The best professional liability insurance in Texas is from Next, which stands out for its affordability and customer satisfaction. With monthly costs of $233 for LLCs with 20 employees and $42 for sole proprietors, Next offers the best overall value and also ranks as the cheapest insurer in the state.

MoneyGeek Logo IconBest Prof. LiabilityTexas
2024

Best Professional Liability Insurance in Texas

Why Trust MoneyGeek? We collected 1,162 professional liability insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best professional liability insurance companies for small businesses in Texas.

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Coverage costs and company information for professional liability insurance providers in Texas were updated in 2023.

1,162 Quotes Analyzed
 
6Companies Compared
 
50Zip Codes

Overall Best Professional Liability Insurance in Texas

MoneyGeek named Next as Texas' best overall professional liability insurance provider, excelling in affordability for both LLCs with 20 employees and sole proprietors. The table below shows MoneyGeek scores and costs for all companies we've reviewed so you can see how the insurers stack up.

How was this MoneyGeek score calculated?

NextMoneyGeek Score97Monthly Cost Without Employees$42Monthly Cost With 20 Employees$233
The HartfordMoneyGeek Score95Monthly Cost Without Employees$89Monthly Cost With 20 Employees$298
biBERKMoneyGeek Score93Monthly Cost Without Employees$132Monthly Cost With 20 Employees$482
ThimbleMoneyGeek Score90Monthly Cost Without Employees$49Monthly Cost With 20 Employees$1,839
MoneyGeek’s Pick: NextScore: 97
Next
5/5LLC Affordability
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
2/5Financial Stability
3/5Coverages Offered
PROS

Exceptional affordability for LLCs and sole proprietors

High customer satisfaction rating

Quick and easy quote process

CONS

Limited range of coverage options

Financial stability may be less robust

Quote time isn't the fastest

Company Highlights

Next offers the best professional liability insurance in Texas, particularly excelling in affordability. The monthly cost is $233 for LLCs and $42 for sole proprietors. Next's customer satisfaction is high, reflecting their commitment to superior service. The company also makes it easy to get a quote, taking an average of one minute and ten seconds. However, while Next offers a range of coverages, it falls short of some competitors. The financial stability of Next, based on an A- AM Best rating, might not be as robust as some other insurers, but it's still dependable.

Cheapest Professional Liability Insurance in Texas

Next is the cheapest professional liability insurer in Texas, with average monthly costs of $233 for LLCs with 20 employees and $42 for sole proprietors. The Hartford, the second-cheapest, charges $298 and $89, respectively. Our affordability score combines these two costs to present a balanced view of overall cost-effectiveness.

How was this MoneyGeek score calculated?

MoneyGeek’s Pick: NextScore: 100
Next
5/5LLC Affordability
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
2/5Financial Stability
3/5Coverages Offered
4/5Online Quote Process
PROS

Unbeatable price point for both LLCs and sole proprietors

Positive customer service feedback

Convenient, rapid quote process

CONS

Financial stability isn't top-tier

Coverage diversity could be enhanced

Quicker quote times are available elsewhere

Company Highlights

Next is the go-to choice in Texas for cheap professional liability insurance. The company's policies are cost-effective for both LLCs and sole proprietors. Next's customer satisfaction ratings underscore their excellent service quality. The time required to obtain a quote is also quite brief, taking just over a minute. However, there is room for improvement in terms of financial stability and coverage options, though Next still maintains a reliable A- AM Best rating.

Best Professional Liability Insurance for Sole Proprietors in Texas

Next tops the list as the best professional liability insurer for Texas-based sole proprietors, earning a MoneyGeek score of 96 out of 100 thanks to its affordability and swift quote generation time. With a monthly cost of just $42, Next surpasses its closest competitor, Thimble, which scored 94 out of 100. If you're a sole proprietor, Next offers exceptional value and efficiency.

How was this MoneyGeek score calculated?

MoneyGeek’s Pick: NextScore: 97
Next
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
2/5Financial Stability
3/5Coverages Offered
4/5Online Quote Process
PROS

Outstanding affordability for independent professionals

Excellent customer service track record

Swift and efficient quote process

CONS

Adequate, but not superior, financial stability

Limited breadth of coverages offered

Faster quote times can be found elsewhere

Company Highlights

Next ranks as the best professional liability insurance provider for sole proprietors without employees in Texas. The insurer combines great affordability, high customer satisfaction and a fast quote process, making it an excellent choice for independent professionals. Despite its mediocre financial stability score, based on an A- AM Best rating, Next is a reliable option. Though its range of offered coverages could be more extensive, Next remains a strong contender in the insurance market.

Best Professional Liability Insurance for LLCs With 20 Employees in Texas

The Hartford earns the top spot for professional liability insurance for Texas LLCs with 20 employees, achieving a MoneyGeek score of 98 out of 100 based on its affordability, customer satisfaction and coverage range. With a monthly cost of $298, it edges out the second-place insurer, biBERK. It's important to note that employee count significantly influences insurance costs; businesses with fewer than 20 employees may pay less, while those with more can expect higher costs.

How was this MoneyGeek score calculated?

MoneyGeek’s Pick: The HartfordScore: 98
The Hartford
5/5LLC Affordability
5/5Customer Satisfaction
4/5Financial Stability
5/5Coverages Offered
4/5Online Quote Process
PROS

Top-rated affordability for LLCs

High customer satisfaction ratings

Wide range of coverages offered

CONS

While quote time is good, faster options exist

Despite high financial stability, others score higher

Company Highlights

The Hartford is the top choice for professional liability insurance for LLCs with 20 employees in Texas. The company excels in affordability, customer satisfaction and the breadth of coverages offered. The Hartford's financial stability is quite strong, as indicated by its A+ AM Best rating, providing reassurance to policyholders. The company's quote generation process is also quick, taking just a minute and nine seconds.

Best Professional Liability Insurance for Fast Quotes in Texas

Thimble leads its competitors in Texas for quick professional liability insurance quotes, delivering an average quote time of just 27 seconds. A fast online quote process allows you to compare insurance options quickly, make informed decisions and secure coverage with minimal disruption to your daily operations, saving valuable time and resources.

How was this MoneyGeek score calculated?

MoneyGeek’s Pick: ThimbleScore: 90
Thimble
1/5LLC Affordability
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Coverages Offered
5/5Online Quote Process
PROS

Fastest quote process of the companies on our list

Affordable for sole proprietors

Broad range of coverage options

CONS

High cost for LLCs

Customer satisfaction is below average

Financial stability could be stronger

Company Highlights

Thimble stands out in the Texas professional liability insurance landscape for its fast quote process, clocking in at just 27 seconds. For sole proprietors, Thimble offers excellent affordability, with a monthly cost of $49. Thimble's offerings for LLCs are more costly at $1,839 per month. The company boasts solid financial stability with an A AM Best rating, though not top-tier, and has room for improvement in customer satisfaction. However, the insurer does offer a diverse range of coverages to cater to different business needs.

How Much Is Professional Liability Insurance in Texas?

In Texas, the average monthly cost of professional liability insurance is approximately $713 for LLCs with 20 employees and $78 for sole proprietors without employees. This cost is based on the policy limits set at $1 million per occurrence, a $1 million aggregate limit and a $5,000 deductible. Here’s what those policy limits mean:

  • The per occurrence limit is the most an insurer would pay for a single incident throughout the policy’s term.
  • The aggregate limit is the most an insurer would pay for all incidents combined throughout the policy’s term.
  • The deductible is the out-of-pocket amount the policyholder would have to pay before insurance coverage starts to pay out a claim.

When comparing Texas to other states, the cost of professional liability insurance for sole proprietors without employees and LLCs with 20 employees is in the middle range. Professional liability insurance costs in Texas are neither significantly higher nor significantly lower than in most other states, indicating a balanced insurance market.

Check out the table below, which provides the average monthly costs of professional liability insurance in each state, to compare and understand the costs associated with your location.

TexasAverage Monthly Cost Without Employees$78Average Monthly Cost With 20 Employees$713

Factors Impacting Professional Liability Insurance Costs in Texas

The cost of professional liability insurance in Texas is not a one-size-fits-all figure. It's tailored to each business based on specific factors, which can influence the cost of coverage, making it higher or lower than the state average. Understanding how these elements impact your premium is key to making informed decisions about your professional liability insurance.

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    Industry and type of services provided

    Certain industries and professions come with higher risks than others. For example, a construction company faces different kinds of risks compared to a consulting firm. The more risk associated with the services you provide, the higher your insurance costs can be.

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    Location

    Where your business operates also plays a role in determining your coverage costs. Higher costs of living or higher litigation rates in your area can lead to increased insurance premiums.

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    Number of employees

    The more employees you have, the higher your insurance costs are likely to be. This is because having more employees can increase the risk of errors or omissions that could lead to a claim.

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    Coverage limits

    Choosing higher coverage limits means your insurer would potentially pay out more in the event of a claim. Therefore, higher limits usually lead to higher premiums.

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    Policy add-ons

    Adding extra coverages to your policy, such as general liability or property coverage, can increase your premium. While these add-ons can provide valuable protection, assessing their costs versus their benefits to your business is essential.

Who Needs Professional Liability Insurance in Texas?

Professional liability insurance is typically not a legal requirement for most businesses. There are exceptions to this rule in high-risk industries like healthcare and law, where malpractice insurance — another name for professional liability insurance — may be legally required.

  • Legal malpractice insurance: In the legal field within Texas, the state doesn't require attorneys to carry professional liability insurance. However, some referral services in the state may only recommend insured lawyers.
  • Medical malpractice insurance: While the state of Texas doesn't impose a legal obligation on physicians to maintain medical malpractice insurance, individual hospitals and healthcare facilities may enforce their own rules. These institutions often require their healthcare providers to carry malpractice insurance as a condition of their employment. There are also specific rules regarding filing medical malpractice suits in Texas.
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CONSIDER PROFESSIONAL LIABILITY EVEN IF IT'S NOT REQUIRED

Even when not legally required, professional liability insurance provides a financial safety net in the event of claims or lawsuits for alleged negligence or failure to perform professional duties. It safeguards the business's reputation, maintains client trust and offers peace of mind, allowing you to focus on your core operations without worrying about potential legal disputes.

Frequently Asked Questions About Professional Liability Insurance in Texas

Understanding professional liability insurance in Texas may seem daunting as many variables are involved. The following questions delve into the highest-rated and most cost-effective insurance providers, provide a detailed breakdown of what this type of insurance typically covers and offer insight into the average costs specific to Texas.

Which company has the best professional liability insurance in Texas?
Which company has the cheapest professional liability insurance in Texas?
What does professional liability insurance cover and not cover in Texas?
How much does professional liability cost in Texas?

About Melissa Wylie


Melissa Wylie headshot

Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.


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