Key Takeaways

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NEXT Insurance, The Hartford and Simply Business offer small businesses the best professional liability insurance.

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The best professional liability insurance for you varies because of your industry, state and budget.

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Assess your profession's risks, research different insurance companies, compare quotes and consider bundling to find the right policy.

Best Professional Liability Insurance Companies

NEXT Insurance is the best professional liability insurance provider for small business owners, offering excellent service quality for affordable premiums. Our research also found The Hartford, Simply Business and Progressive Commercial excellent liability insurance companies to protect your business from claims about errors or negligence in your professional services.

Provider
Overall Score
Average Monthly Cost

NEXT Insurance

4.73

$72.24

The Hartford

4.70

$71.54

Simply Business

4.51

$76.42

Progressive Commercial

4.44

$75.31

Coverdash

4.44

$77.76

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LEARN MORE ABOUT PROFESSIONAL LIABILITY INSURANCE

Finding the best professional liability insurance starts with understanding the basics of coverage, costs and how it differs from other business policies.

Best Professional Liability Insurance Companies by Industry

The Hartford has the best professional liability insurance for small businesses across 44 industries in our study. NEXT Insurance and Nationwide follow with top scores for 25 and 7 industries, respectively.

AccountantsThe Hartford4.78
Ad AgencyThe Hartford4.78
Auto RepairNationwide4.76
AutomotiveNEXT Insurance4.82
BakeryThe Hartford4.78
BarberNEXT Insurance4.82
Beauty SalonNEXT Insurance4.73
Bounce HouseThe Hartford4.78
CandleNEXT Insurance4.82
CannabisThe Hartford4.78
CateringNEXT Insurance4.73
CleaningNEXT Insurance4.61
Coffee ShopCoverdash4.68
Computer ProgrammingThe Hartford4.78
Computer RepairNEXT Insurance4.82
ConstructionNationwide4.63
ConsultingThe Hartford4.78
ContractorThe Hartford4.74
CourierThe Hartford4.78
DJNEXT Insurance4.82
DaycareThe Hartford4.78
DentalNEXT Insurance4.82
Dog GroomingThe Hartford4.67
DroneThe Hartford4.78
EcommerceNEXT Insurance4.63
ElectricalSimply Business4.71
EngineeringNEXT Insurance4.75
ExcavationThe Hartford4.77
FloristNEXT Insurance4.62
FoodCoverdash4.68
Food TruckNEXT Insurance4.82
Funeral HomeThe Hartford4.78
GardeningNEXT Insurance4.82
HVACThe Hartford4.52
HandymanThe Hartford4.75
Home-basedNEXT Insurance4.82
Home-basedNEXT Insurance4.82
Home-based businessThe Hartford4.78
HospitalityNationwide4.76
JanitorialNEXT Insurance4.66
JewelryThe Hartford4.76
Junk RemovalThe Hartford4.78
Lawn/LandscapingNationwide4.67
LawyersThe Hartford4.78
ManufacturingThe Hartford4.78
MarineThe Hartford4.78
MassageNationwide4.76
Mortgage BrokerThe Hartford4.78
MovingThe Hartford4.78
NonprofitThe Hartford4.75
PaintingThe Hartford4.55
Party RentalThe Hartford4.78
Personal TrainingThe Hartford4.78
Pest ControlThe Hartford4.78
PetThe Hartford4.74
PharmacyThe Hartford4.78
PhotographyNEXT Insurance4.82
Physical TherapyThe Hartford4.78
PlumbingThe Hartford4.78
Pressure WashingThe Hartford4.61
Real EstateNEXT Insurance4.82
RestaurantNationwide4.76
RetailNationwide4.76
RoofingNEXT Insurance4.65
SecurityNEXT Insurance4.63
Snack BarsThe Hartford4.78
SoftwareThe Hartford4.78
Spa/WellnessSimply Business4.71
Speech TherapistThe Hartford4.78
StartupSimply Business4.71
Tech/ITThe Hartford4.78
Tech/ITNEXT Insurance4.78
TransportationThe Hartford4.78
TravelThe Hartford4.78
Tree ServiceNEXT Insurance4.67
TruckingThe Hartford4.78
TutoringNEXT Insurance4.82
VeterinarybiBERK4.70
Wedding PlanningNEXT Insurance4.82
WeldingThe Hartford4.78
WholesaleThe Hartford4.73
Window CleaningThe Hartford4.60

Best Professional Liability Insurance Companies by State

NEXT Insurance has the best professional liability insurance for small businesses across all 50 states in our study. The Hartford ranks second in 48 states, with Simply Business taking second place in Alaska and Hawaii.

AlabamaNEXT Insurance4.73
AlaskaNEXT Insurance4.70
ArizonaNEXT Insurance4.73
ArkansasNEXT Insurance4.76
CaliforniaNEXT Insurance4.73
ColoradoNEXT Insurance4.71
ConnecticutNEXT Insurance4.74
DelawareNEXT Insurance4.76
FloridaNEXT Insurance4.73
GeorgiaNEXT Insurance4.71
HawaiiNEXT Insurance4.72
IdahoNEXT Insurance4.74
IllinoisNEXT Insurance4.70
IndianaNEXT Insurance4.76
IowaNEXT Insurance4.75
KansasNEXT Insurance4.71
KentuckyNEXT Insurance4.70
LouisianaNEXT Insurance4.74
MaineNEXT Insurance4.74
MarylandNEXT Insurance4.71
MassachusettsNEXT Insurance4.71
MichiganNEXT Insurance4.73
MinnesotaNEXT Insurance4.69
MississippiNEXT Insurance4.73
MissouriNEXT Insurance4.74
MontanaNEXT Insurance4.73
NebraskaNEXT Insurance4.72
NevadaNEXT Insurance4.74
New HampshireNEXT Insurance4.74
New JerseyNEXT Insurance4.70
New MexicoNEXT Insurance4.72
New YorkNEXT Insurance4.76
North CarolinaNEXT Insurance4.74
North DakotaNEXT Insurance4.74
OhioNEXT Insurance4.75
OklahomaNEXT Insurance4.70
OregonNEXT Insurance4.75
PennsylvaniaNEXT Insurance4.73
Rhode IslandNEXT Insurance4.71
South CarolinaNEXT Insurance4.72
South DakotaNEXT Insurance4.73
TennesseeNEXT Insurance4.70
TexasNEXT Insurance4.73
UtahNEXT Insurance4.76
VermontNEXT Insurance4.71
VirginiaNEXT Insurance4.70
WashingtonNEXT Insurance4.69
West VirginiaNEXT Insurance4.72
WisconsinNEXT Insurance4.69
WyomingNEXT Insurance4.72
Compare Small business Insurance Rates

Ensure you're getting the best rate for your small business insurance. Compare quotes from the top insurance companies.

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Best Professional Liability Insurance Review

To help you find the best professional liability insurance for your specific needs, we've reviewed three top providers based on different priorities: overall performance, affordability and industry specialization.

Next

Best Overall: NEXT Insurance

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pros

  • Ranked first overall in MoneyGeek's study of insurance companies

  • Topped the list for customer service and digital experience

  • Ranked second in affordability

  • Provides online quotes and coverage in 10 minutes

  • Covers over 1,300 different professions

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cons

  • Claims process ranks lower than other providers

  • Relatively new, with only nine years in business

COMPANY HIGHLIGHTS

Busy small business owners need to get professional liability coverage without the hassle. NEXT's digital platform lets you get quotes, manage policies and access certificates instantly. You won't spend time waiting for agents or office hours. Our study puts NEXT's professional liability insurance costs at $72 monthly, making it an affordable option that won't strain your budget. Plus, you'll get reliable support from a financially stable carrier with an A- rating from AM Best that understands small business needs.

The Hartford

Best for Affordability: The Hartford

*on The Hartford
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pros

  • Ranked 2nd overall among all providers studied

  • Has the lowest average rates for professional liability insurance

  • Excellent claims process ranked first among providers

  • Has an A+ Superior rating from AM Best

  • Over 200 years of proven business experience

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cons

  • Unavailable in Alaska and Hawaii

  • Weak digital experience compared to competitors

COMPANY HIGHLIGHTS

As a small business owner, professional liability insurance costs can make or break your budget. Our study found that The Hartford delivers the most affordable coverage at $72 monthly. That's $6 less than the industry average. With over 200 years of proven financial stability and an A+ Superior AM Best rating, you'll get reliable financial protection that won't strain your finances.

Nationwide

Best for Construction and Electrical Businesses: Nationwide

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pros

    • Ranks second in policy management among all insurers included in our study
    • Best provider for seven industries
    • Has nearly 100 years of business experience since 1926
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cons

  • Provides a weaker digital experience than competitors

  • Ranked second-to-last in overall affordability

COMPANY HIGHLIGHTS

Construction and electrical professionals face unique errors and omissions risks like design errors, code violations, and faulty workmanship that can result in costly professional liability lawsuits. Our research shows Nationwide offers competitive monthly rates for electrical contractors at $49, but exceeds the industry average rate for construction businesses at $88. When professional mistakes can destroy your business reputation and finances, choosing the right provider matters.

How to Get the Best Professional Liability Insurance

To find the best professional liability insurance means careful evaluation of specific risks and comparing providers. These steps help you find coverage without overpaying for financial protection.

  1. 1

    Assess your profession's risks

    Think about what could go wrong in your work and potential claim costs. A business consultant might face claims for giving ineffective advice, while an error in tax preparation can result in a lawsuit for an accountant.

  2. 2

    Determine your coverage needs

    How much coverage you need depends on your business size and potential lawsuit costs. For instance, a small consulting firm might need $1 million coverage, while larger practices often require $2 million or more.

  3. 3

    Research different insurance providers

    Compare insurers, but look beyond premiums. Research their financial stability, customer service ratings and industry expertise. Some professional liability companies have strong claims-handling reputations and offer specialized coverage for professions like construction or health care.

  4. 4

    Gather and compare quotes

    Get quotes from at least three insurers to find the best value. Our research shows Chubb's average monthly cost is $89, while The Hartford's is $72. That's a difference of $12 each month.

  5. 5

    Bundle for better rates

    Combining professional liability with other types of business insurance, like general liability and workers’ compensation, can reduce insurance costs. Many insurers offer discounts when bundling multiple policies.

  6. 6

    Review policy details carefully

    Before signing, review what's covered, excluded and your deductible. For example, if you're an IT professional handling client data, check if your policy includes cyber liability claims.

Getting business insurance is just the first step. Even after you're insured, maintaining good business practices and detailed records is a good way to qualify for lower premiums when you renew.

Best Professional Liability Insurance for Small Business: Bottom Line

Getting the right professional liability insurance comes down to understanding your business's specific risks and your state's requirements. NEXT Insurance, The Hartford and Simply Business top our rankings for small businesses, but the best choice depends on your industry and coverage needs. Take the time to compare quotes from multiple providers. Bundling policies saves you money while giving you more comprehensive protection.

Best Professional Liability Insurance: FAQs

We addressed frequently asked questions about the best professional liability insurance for small business owners:

What is professional liability insurance?

How much does a certificate of liability insurance cost?

What's the difference between claims-made and occurrence-based professional liability policies?

Should I bundle professional liability with general liability insurance?

What factors affect professional liability insurance rates?

Do I need professional liability insurance as a freelancer or independent contractor?

Which industries need professional liability insurance most?

What does professional liability insurance not cover?

How do I file a professional liability insurance claim?

How We Chose the Best Professional Liability Insurance Companies

Professional liability insurance covers the costs when clients claim your services caused them harm. Whether you're a consultant, contractor, or professional service provider, the right policy protects your business from expensive lawsuits without draining your budget.

Our Research Approach

We gathered thousands of quotes from 79 industries across four coverage types: professional liability, general liability, workers' compensation and business owner's policies.

Our research used a two-employee business with $300,000 annual revenue and $150,000 payroll for accurate rate comparisons. Coverage included $1 million per claim and $2 million aggregate limits — standard amounts that meet most client contract requirements without breaking small business budgets.

Our Scoring Model

  • Affordability (50%): Cost drives most small business decisions. We compared each company's rates across all four insurance types, focusing on businesses like yours that need multiple coverage types.
  • Customer Experience (30%): When clients threaten lawsuits, response time and claim approval rates matter. We used J.D. Power ratings, National Association of Insurance Commissioners complaint data, review sites and independent agency ratings to measure how well companies handle the claims process.
  • Coverage Options (15%): Professional risks vary dramatically between consultants and contractors. We assessed coverage breadth, policy limits and customization options each company offers for different professional services.
  • Financial Strength (5%): Great rates don't help if companies can't pay claims. We evaluated stability using AM Best and Moody's ratings, financial reports and business longevity.

This approach reflects real priorities: affordable coverage from stable companies that handle claims smoothly. Professional liability claims can drag on for months or years, making reliable claims handling crucial for your business survival. By testing identical business profiles, you can see how rates and services compare for businesses like yours.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.


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