Updated: September 22, 2025

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Key Takeaways

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The Hartford, NEXT and Progressive Commercial offer the cheapest professional indemnity insurance rates nationwide.

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Your industry, business size and claims history directly impact your professional indemnity insurance premiums.

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Reduce costs through strategic shopping, planning based on your business phase and proactive claim prevention tailored to your profession's specific risks.

Cheap Professional Indemnity Insurance Companies

Professional indemnity insurance provides financial protection when clients claim your professional advice or services caused them financial losses. It goes by several names, like E&O insurance and professional liability coverage, which provides the same financial protection against claims alleging professional errors or omissions. This coverage typically does not include a deductible for defense costs, though policy terms vary by provider.

We analyzed rates from 10 major providers and found that The Hartford offers small businesses the best deal at $72 monthly ($858 annually). That's $6 less than the typical professional indemnity insurance cost of $78 monthly. NEXT, Progressive Commercial and Thimble also keep costs reasonable with monthly rates under $77.

The Hartford$72$858
NEXT Insurance$72$867
Progressive Commercial$75$904
Thimble$76$914
Simply Business$76$917
Hiscox$77$928
Coverdash$78$933
biBERK$79$953
Nationwide$82$987
Chubb$89$1,062

Disclaimer

Company Image

The Hartford

Cheapest Overall

MoneyGeek Rating
4.7/ 5
4.8/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options

  • Average Cost of Professional Indemnity

    $72/month

  • Savings Compared to Industry Average

    $6/month

  • Our Survey: Claims Process

    4.5/5

  • Our Survey: Likely to be Recommended to Others

    4.5/5

Cheap Professional Indemnity Insurance Companies by Industry

We reviewed professional indemnity rates across 77 industries and found that The Hartford offers the lowest costs in 71.

Food businesses get the best deal with NEXT Insurance at $26 monthly, which gives huge savings of $84 compared to the industry average of $110. Mortgage brokers face the highest costs, but The Hartford's $149 monthly rate beats the $166 industry average by $17.

AccountantsThe Hartford$130
Ad AgencyNationwide$47
Auto RepairThe Hartford$74
AutomotiveThe Hartford$67
BakeryThe Hartford$47
BarberThe Hartford$38
Beauty SalonThe Hartford$44
Bounce HouseThe Hartford$53
CandleThe Hartford$37
CannabisThe Hartford$110
CateringThe Hartford$71
CleaningThe Hartford$49
Coffee ShopThe Hartford$55
Computer ProgrammingThe Hartford$94
Computer RepairThe Hartford$56
ConstructionCoverdash$41
ConsultingThe Hartford$96
ContractorThe Hartford$45
CourierChubb$34
DJThe Hartford$41
DaycareThe Hartford$96
DentalThimble$62
Dog GroomingThe Hartford$49
DroneThe Hartford$95
EcommerceThe Hartford$55
ElectricalSimply Business$42
EngineeringCoverdash$72
ExcavationThe Hartford$61
FloristThe Hartford$34
FoodNEXT Insurance$26
Food TruckThe Hartford$52
Funeral HomeThe Hartford$73
GardeningThe Hartford$36
HVACThe Hartford$73
HandymanThe Hartford$48
Home-based businessThe Hartford$33
HospitalityThe Hartford$65
JanitorialThe Hartford$44
JewelryThe Hartford$55
Junk RemovalThe Hartford$60
Lawn/LandscapingThe Hartford$46
LawyersThe Hartford$130
ManufacturingThe Hartford$53
MarineThe Hartford$78
MassageThe Hartford$94
Mortgage BrokerThe Hartford$149
MovingThe Hartford$73
NonprofitThe Hartford$45
PaintingThe Hartford$57
Party RentalThe Hartford$49
Personal TrainingThe Hartford$63
Pest ControlThe Hartford$85
PetThe Hartford$41
PharmacyChubb$46
PhotographyThe Hartford$57
Physical TherapyThe Hartford$84
PlumbingThe Hartford$80
Pressure WashingThe Hartford$51
Real EstateThe Hartford$113
RestaurantThe Hartford$73
RetailThe Hartford$49
RoofingThe Hartford$87
SecurityThe Hartford$89
Snack BarsThe Hartford$43
SoftwareThe Hartford$85
Spa/WellnessThe Hartford$98
Speech TherapistThe Hartford$88
StartupThe Hartford$64
Tech/ITThe Hartford$88
TransportationThe Hartford$85
TravelThe Hartford$87
Tree ServiceThe Hartford$68
TruckingThe Hartford$99
TutoringThe Hartford$54
VeterinaryThe Hartford$103
Wedding PlanningThe Hartford$68
WeldingThe Hartford$68
WholesaleThe Hartford$55
Window CleaningThe Hartford$56

Disclaimer

Cheap Professional Indemnity Insurance Companies by State

Location matters when you're shopping for professional indemnity insurance, and The Hartford is your cheapest option in 39 states, while NEXT Insurance offers the best rates in 11 states.

North Carolina businesses win big with The Hartford at $62 monthly. That's $28 less than the state's $90 monthly average. Louisiana has the priciest market, though The Hartford's $83 monthly rate still saves you $35 compared to the $118 state average.

AlabamaThe Hartford$70
AlaskaNEXT Insurance$67
ArizonaNEXT Insurance$66
ArkansasThe Hartford$68
CaliforniaThe Hartford$80
ColoradoNEXT Insurance$70
ConnecticutThe Hartford$78
DelawareNEXT Insurance$75
FloridaThe Hartford$78
GeorgiaThe Hartford$73
HawaiiNEXT Insurance$77
IdahoNEXT Insurance$67
IllinoisThe Hartford$78
IndianaThe Hartford$69
IowaThe Hartford$68
KansasThe Hartford$69
KentuckyThe Hartford$66
LouisianaThe Hartford$83
MaineNEXT Insurance$63
MarylandThe Hartford$68
MassachusettsThe Hartford$75
MichiganThe Hartford$67
MinnesotaThe Hartford$67
MississippiThe Hartford$71
MissouriThe Hartford$71
MontanaThe Hartford$70
NebraskaThe Hartford$68
NevadaNEXT Insurance$80
New HampshireThe Hartford$71
New JerseyThe Hartford$81
New MexicoThe Hartford$72
New YorkNEXT Insurance$82
North CarolinaThe Hartford$62
North DakotaNEXT Insurance$63
OhioThe Hartford$66
OklahomaThe Hartford$67
OregonThe Hartford$66
PennsylvaniaThe Hartford$83
Rhode IslandThe Hartford$78
South CarolinaThe Hartford$73
South DakotaThe Hartford$67
TennesseeThe Hartford$69
TexasThe Hartford$72
UtahNEXT Insurance$67
VermontThe Hartford$69
VirginiaThe Hartford$65
WashingtonThe Hartford$81
West VirginiaThe Hartford$76
WisconsinThe Hartford$70
WyomingThe Hartford$66

Disclaimer

A Guide to Affordable Professional Indemnity Insurance

Even if you find an affordable provider, you might not qualify for the cheapest professional indemnity insurance rates because of your industry, claims history or business size. Reducing insurance costs means going beyond smart shopping strategies and focusing on strategies that work for your specific situation. We'll help you manage your E&O coverage costs through targeted tactics.

How to Get Cheap Professional Indemnity Insurance

What you pay for professional indemnity insurance depends on several factors you control. Here are ways to cut your costs without sacrificing coverage:

  1. 1

    Determine if you need professional indemnity insurance

    Not all professionals require E&O coverage, but it's essential for consultants, lawyers, accountants, real estate agents and health care providers who provide advice or professional services.

  2. 2

    Pick the right coverage amounts

    Most small businesses go with $1 million per occurrence and $1 million aggregate limits (that's the total your insurer pays for all claims during your policy). Freelance consultants usually need $500,000 to $1 million, but bigger firms need $2 million to $5 million based on what their clients require.

  3. 3

    Choose higher deductibles to lower premiums

    Increasing your deductible can reduce monthly costs substantially. Make sure you can cover the deductible amount if you need to file a claim.

  4. 4

    Compare quotes from multiple insurers

    Rates differ between providers for identical coverage, so a consultant might pay more with one insurer than another for the same financial protection.

  5. 5

    Pay annually instead of monthly

    Most insurers charge processing fees for monthly payments, which can add to your total annual cost.

  6. 6

    Bundle with other business insurance policies

    Adding professional indemnity to your existing general liability or business owner's policy (BOP) often triggers multi-policy discounts.

  7. 7

    Work with industry-specific insurers

    Some carriers specialize in certain professions and offer competitive rates for those sectors. Technology companies often find better pricing from tech-focused insurers than from general carriers.

  8. 8

    Maintain a clean claims history

    Even one claim in recent years can increase premiums. Focus on prevention through clear contracts, documentation and communication with clients.

Cost-Savings Strategies by Business Phase

Your business stage determines which professional indemnity cost strategies work best for your cash flow and coverage needs.

Business Reason
Strategies

Starting Out

• Begin with $500,000 to $1 million in coverage so you don't overpay on premiums • Go with higher deductibles ($2,500-$5,000) to lower your monthly bills • Look for insurers that specialize in your type of business since they know startup challenges • Don't buy more coverage than you actually need based on your client contracts • Pay the full year upfront if you can afford it to skip monthly fees

Expanding

• Increase coverage limits ($1 million to $2 million) as contracts and revenue grow • Bundle professional indemnity with general liability when adding employees • Stay claims-free while your business grows to keep your rates low • Check your coverage each year when client needs shift • Keep records of your work processes and client talks to show insurers you're lower risk

Established

• Leverage clean claims history for experience-based premium discounts • Negotiate multi-year policies for rate stability and potential savings • Set up organized safety programs to earn discounts on your premiums • Think about buying higher limits ($2 million to $5 million) when you work with big companies • Bundle all your business insurance together to get the best package deals

Preventing Professional Indemnity Claims

Avoiding claims is the most effective way to keep professional indemnity costs low. Each profession faces distinct risks that require targeted prevention strategies.

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    Accountants

    Maintain detailed records of all client conversations about tax strategies and secure copies of source documents they provide. Many claims arise when clients later dispute advice they agreed to or claim they provided different information than what you received. Always send written summaries of complex tax discussions and obtain client confirmation before filing returns.

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    Lawyers

    Write detailed engagement letters that spell out which legal issues you'll handle, and set up reliable calendar systems with backup deadline alerts. Most legal malpractice happens when attorneys miss important filing deadlines or when clients think you're tracking matters beyond what you agreed to handle. Stick to practicing in areas where you stay current with the law.

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    Financial Advisors

    Thoroughly assess each client's risk tolerance, investment objectives and financial situation before making recommendations. Maintain comprehensive notes of all investment discussions and provide written summaries of portfolio changes. Most claims occur when market downturns prompt clients to argue that investments didn't match their risk profile or that you didn't properly inform them of potential losses.

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    Real Estate Agents

    Independently verify all property information rather than relying solely on seller disclosures, and maintain records of any issues you discover or discuss with clients. Ensure buyers understand market conditions and property limitations through written communications. Claims frequently arise from undisclosed property defects or allegations that agents failed to advise clients about market risks properly.

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    Health Care Providers

    Keep thorough patient records that capture your clinical reasoning for diagnoses and treatment decisions. Adhere to established clinical protocols and guidelines, with clear medical justification for any deviations. Most malpractice claims stem from alleged diagnostic errors or treatment decisions that appear to deviate from accepted medical standards.

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    Architects

    Develop detailed project specifications and preserve comprehensive records of all design decisions and client communications. Utilize standard industry contracts and ensure clients understand the scope of your services versus engineering or construction responsibilities. Many claims arise from cost overruns or structural issues that clients attribute to design inadequacies.

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    IT Consultants

    Establish comprehensive system requirements and obtain written client approval before implementing major changes or new systems. Track detailed project timelines and communicate delays or complications immediately. Most technology claims involve system failures, data loss, or projects that fail to meet promised specifications.

Cheapest Professional Indemnity Insurance: Bottom Line

Your industry and claims history influence rates, but you can find affordable professional indemnity insurance by focusing on the right providers and strategies. The Hartford, NEXT and Progressive Commercial lead our analysis for competitive pricing. Smart cost reduction goes beyond basic shopping, including strategic planning for your business phase and profession-specific claim prevention tactics that protect your finances and reputation.

Cheap Professional Indemnity Insurance Chart

Cheapest Professional Indemnity Insurance: FAQ

Small business owners looking for affordable professional indemnity insurance have many questions about costs, coverage and savings strategies. We've answered the most frequently asked questions about finding cheap E&O coverage:

What is the cheapest professional indemnity insurance?

How much does professional indemnity insurance cost by industry?

Do I need professional indemnity insurance for my business?

What coverage limits should I choose for professional indemnity insurance?

How can I lower my professional indemnity insurance costs?

Do professional indemnity insurance costs vary by state?

How do I prevent professional indemnity claims in my industry?

How We Determined Cheap Professional Indemnity Insurance Rates

Professional indemnity insurance shouldn't drain your business budget. Using the same business profile, we requested quotes from 10 major insurers to find which companies offer affordable coverage.

Our Research Approach

Every quote request used identical specifications:

  • Two employees (three people total, including the owner)
  • $150,000 annual payroll
  • $300,000 annual revenue
  • Already insured status
  • $1 million per occurrence/$1 million aggregate coverage limits

Using the same profile across all insurers reveals genuine price differences rather than variables that muddy comparisons. Our focus on companies known for competitive small business rates means these findings reflect what you'll encounter when shopping for coverage.

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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