Best Professional Liability Insurance in Texas (2024)

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 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.

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.

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.

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.

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.

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.

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.

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.

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.