Professional Liability Insurance Wisconsin

Next ranks as the top provider for both sole proprietors and LLCs in the Badger State with a MoneyGeek Score of 98 out of 100, offering a perfect balance of excellent customer service and affordable rates, with monthly premiums as low as $39 for sole proprietors and $217 for LLCs. We also recommend considering The Hartford, biBERK, and Thimble as other reliable options when exploring professional liability insurance choices.

*Rates presented for LLCs refer to a software development company with 20 employees, $5 million is annual revenue and $1,250,000 in annual payroll costs. Sole proprietor rates assume a business with no payroll expenses and $500,000 in annual revenue.

The average costs for professional liability insurance are approximately $838 per year for sole proprietors and $8,259 for LLCs. Shopping around is key, as annual costs can vary significantly, with rates ranging from $473 to $1,320 for sole proprietors and $2,604 to $22,085 for LLCs.

*Rates presented for LLCs refer to a software development company with 20 employees, $5 million is annual revenue and $1,250,000 in annual payroll costs. Sole proprietor rates assume a business with no payroll expenses and $500,000 in annual revenue.

Professional liability insurance costs vary based on factors like industry type and coverage needs; the section below details each of these key elements.

Navigating business insurance, especially professional liability insurance, can be confusing for newer small businesses or first-time buyers. This guide will explain what professional liability insurance is, who needs it, and how to secure the right coverage at the best price.

Professional liability insurance covers damages and legal expenses that arise from providing services to clients. It comes in two forms: claims-made, which protects you during the policy period, and occurrence-based, which covers qualifying claims no matter when they are filed.

Professional liability insurance is mandatory in certain situations, such as when required by a client contract, state law, or to obtain a business license in your field. Even if it's not legally required, businesses in certain professions should strongly consider getting coverage due to the nature of their services. Here's a list of professions that either require or benefit from professional liability insurance:

• Accountants and tax preparers
• Lawyers
• Architects
• Real estate agents
• Consultants
• Financial advisors
• IT professionals
• Healthcare providers
• Marketing and advertising professionals
• Graphic designers
• Insurance professionals
• Interior designers
• Construction contractors

The next section outlines steps to find affordable and suitable professional liability insurance for Cheeseheads.

MoneyGeek's top picks for professional liability insurance in the Badger State are Next, The Hartford, and biBERK. While these are great options, it's wise to compare providers yourself, determine what coverage you need, and research each company's offerings before making a decision.

The next section answers common FAQs about professional liability insurance for residents of the Badger State.

MoneyGeek created a scoring system to compare business insurance companies across six metrics and ranked them based on their scores for Wisconsin. We chose these companies based on their broad national coverage and ability to provide an online quote.

Small Business Sample Profiles:

We gathered quotes for two types of software development companies in Wisconsin:

• An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs.
• A sole proprietorship with five years in business, no employees, $500,000 in annual revenue and no payroll costs.

MoneyGeek’s Scoring System:

In our unique scoring system, companies can earn up to five points in each of the six categories. We then use these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:

• Affordability for LLCs: 55%
• Affordability for sole proprietors: 5%
• Customer satisfaction: 25%
• Financial stability: 5%
• Coverages offered: 5%
• Online quote process: 5%

Each company’s score incorporates:

• Customer satisfaction data from the National Association of Insurance Commissioners (NAIC) customer complaint index (we reviewed annual complaint data from 2020 to 2022, the most recent year available)
• Financial strength ratings from AM Best
• Cost data obtained through online quotes, based on the monthly and yearly cost of a professional liability policy with a $1 million per occurrence limit, $1 million aggregate limit and $5,000 deductible
• How many minutes it took to complete an online application and receive a quote from each company
• The variety of each company’s coverage offerings and the number of core business insurance coverage options available to customers

Quote Gathering Process

Three companies on our list — Next, The Hartford and Thimble — require business owners to bundle professional liability insurance with general liability coverage when obtaining an online quote. Thimble also includes cyber liability insurance in its bundle.

For these three companies, we gathered bundled quotes and quotes for general liability insurance. We then subtracted the cost of general liability insurance from the bundled amount to determine the cost of professional liability coverage on its own.