Best Professional Liability Insurance for Small Businesses in 2023

Professional liability coverage shields professionals from financial losses due to negligence claims related to their services.

Based on its affordable pricing and customer satisfaction, Next is the top-rated professional liability insurance provider, with a MoneyGeek score of 97 out of 100. The average professional liability insurance policy from Next costs $41 per month for sole proprietors and $241 per month for LLCs with 20 employees.

Next is MoneyGeek's choice for the best professional liability insurance for small businesses thanks to its affordability, high customer satisfaction and quick quote times. Strong scores in these categories helped Next secure a MoneyGeek score of 97 out of 100, the highest among listed companies.

The Hartford, our runner-up with a score of 95, also scored high in customer satisfaction. Use the table below to compare MoneyGeek scores and costs for all companies we reviewed.

Next is also the cheapest professional liability insurance provider for small businesses, with an average monthly cost of $41 for sole proprietors and $241 for LLCs with 20 employees. Note that our affordability ranking combines costs for both business types, so the cheapest company overall may not necessarily offer the lowest rates for both categories.

The Hartford shines as the best professional liability insurance for small businesses structured as LLCs with 20 employees, earning an impressive MoneyGeek score of 99 out of 100. With an average monthly premium of $304 for such businesses, The Hartford's blend of value and quality makes it the preferred choice for LLCs seeking professional liability coverage.

With a MoneyGeek score of 97 out of 100, Next is the top choice for small businesses without employees. Next offers an average monthly premium of just $41 for this business profile. The affordability and quality of its services make it an excellent choice for sole proprietors seeking professional liability coverage.

Thimble is fastest in providing professional liability insurance quotes for small businesses, boasting an average quote time of just 42 seconds. This swift service sets Thimble apart, making it the quickest among all the companies reviewed on our list. If quote speed is a priority, Thimble is the top choice for obtaining small business professional liability insurance.

The average monthly cost of professional liability insurance differs based on the nature and size of the business. Sole proprietors without employees can anticipate costs around $80 per month, whereas LLCs with 20 employees face an average cost of $706 per month.

What your business will pay for professional liability insurance is contingent on a variety of factors:

• Industry: Some industries inherently carry higher risk, increasing insurance premiums. For instance, a technology consulting firm may face greater potential liabilities than a small boutique.
• Business size and employee count: The size of a business, including its employee count, impacts costs. More employees can increase the chance of errors or omissions that could lead to claims, resulting in higher premiums.
• Location: A business's geographical location can influence costs, as different regions or cities may have varying risk levels or local regulations that affect insurance rates.
• Claims history: Businesses that have made numerous insurance claims in the past are likely to see higher premiums.
• Coverage limits: Opting for higher coverage limits will increase premiums. It's a balance between the level of protection required and the affordability of the premiums.

By understanding these influencing factors, businesses can better anticipate their insurance budget and select a provider that offers the best balance of cost and coverage.

Even after you've been insured for a while, remember to review your policy regularly as your business needs may change over time. The right coverage now might not be the right coverage in a year.

Selecting a professional liability insurance policy is a pivotal decision for business owners. To help clarify the process, we've addressed key questions that often arise when choosing the best insurance coverage.