Updated: September 11, 2025

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Key Takeaways

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Our research shows that The Hartford, NEXT Insurance and Progressive Commercial offer the cheapest professional liability insurance rates.

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Your industry, coverage limits and claims history affect your professional liability policy cost the most.

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Affordable professional liability coverage comes from strategic shopping, tailored coverage decisions and proactive steps to prevent E&O claims.

Cheap Professional Liability Insurance Companies

Professional liability insurance provides financial protection for businesses from claims alleging professional mistakes or negligence. This coverage typically includes legal defense costs and settlements or judgments, subject to policy limits and terms. You may also know it as errors and omissions (E&O) insurance or professional indemnity.

We analyzed 10 major insurers and found that The Hartford offers the cheapest professional liability insurance at $72 monthly ($858 annually). That's $6 cheaper than the average cost of professional liability coverage, which is $78 monthly. NEXT, Progressive Commercial and Thimble are also affordable options, with monthly rates below $77.

Rates based on quotes for a sample business profile and may vary based on your specific business details, location and coverage needs.

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 Liability

    $72/month

  • Savings Compared to Industry Average

    $6/month

  • Our Survey: Claims Process

    4.5/5

  • Likely to be Recommended to Others

    4.5/5

Cheap Professional Liability Insurance Companies by Industry

The Hartford offers the cheapest professional liability insurance across 71 industries in our study. Mortgage brokers pay the highest rates but can save $17 monthly with The Hartford's $149 rate compared to the $166 industry average.

Food businesses get the best deal with NEXT Insurance, costing $26 monthly. That's $84 below the typical $110 rate.

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$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 Liability Insurance Companies by State

Our study shows only two providers offering the cheapest rates across different states: The Hartford in 39 states and NEXT in 11 states.

If your business is in North Carolina, you can save $5 monthly through Hartford, which offers professional liability coverage at $62. Small business owners pay more for E&O insurance in Louisiana, the state with the highest rate. But The Hartford's monthly rate of $83 is $4 cheaper than the state average of $87.

AlabamaThe Hartford$70
AlaskaNEXT$67
ArizonaNEXT$66
ArkansasThe Hartford$68
CaliforniaThe Hartford$80
ColoradoNEXT$70
ConnecticutThe Hartford$78
DelawareNEXT$75
FloridaThe Hartford$78
GeorgiaThe Hartford$73
HawaiiNEXT$77
IdahoNEXT$67
IllinoisThe Hartford$78
IndianaThe Hartford$69
IowaThe Hartford$68
KansasThe Hartford$69
KentuckyThe Hartford$66
LouisianaThe Hartford$83
MaineNEXT$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$80
New HampshireThe Hartford$71
New JerseyThe Hartford$81
New MexicoThe Hartford$72
New YorkNEXT$82
North CarolinaThe Hartford$62
North DakotaNEXT$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$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 Liability Insurance

Understanding what affects your professional liability premium helps you make smarter coverage decisions beyond just finding competitive rates. Your business stage, industry risk level and claims history all influence what you'll pay.

How to Get Cheap Professional Liability Insurance

Smart shopping for professional liability insurance can save you hundreds of dollars annually while getting the right financial protection.

  1. 1

    Figure out if you actually need coverage

    Professional liability insurance makes sense when your advice (or mistakes) could cost clients money. Investment advisors need coverage because one bad recommendation can wipe out someone's retirement savings. IT consultants face similar risks; a system crash can shut down a client's business for days. But if you only sell physical products without giving advice, you're less likely to need professional indemnity coverage.

  2. 2

    Buy the right amount of coverage

    Most professionals start with $1 million coverage per claim, though your actual needs depend on potential client losses. Consultants working from home handle smaller projects, so limits between $500,000 and $1 million work well. IT firms and contractors deal with bigger operations and typically need $1 million to $2 million. Financial advisors and lawyers face the highest exposure and benefit most from policies with $2 million or higher coverage limits.

  3. 3

    Shop multiple companies

    Compare rates from at least three insurers. Start with specialists like Hiscox and CNA, who understand E&O risks better, but don't ignore general insurers who sometimes offer more competitive rates.

  4. 4

    Pay annually.

    Monthly payment plans include processing fees that add up over time. Paying annually eliminates these extra costs.

  5. 5

    Consider higher deductibles

    Higher deductibles lower your premium and make sense for most professional service businesses. Make sure you can afford the deductible amount if something happens. Note that deductibles typically apply to settlements and judgments, not legal defense costs.

  6. 6

    Bundle cyber coverage.

    If you store client data on computers, bundling cyber liability with your E&O policy makes financial sense. Buying both coverages together costs less than separate policies.

  7. 7

    Keep your record clean.

    Don't file claims for problems you can handle yourself financially. Insurance companies reward businesses that avoid claims for several consecutive years with meaningful discounts.

  8. 8

    Understand policy timing.

    Professional liability works on a claims-made basis, meaning coverage depends on when someone sues you rather than when the problem occurred. Ask about prior acts coverage if you're switching carriers. Without prior acts coverage, you'll be uninsured for errors that happened before your new policy took effect.

Cost-Savings Strategies by Business Phase

Your approach to professional liability costs changes as your business grows. Startups worry about cash flow, expanding businesses need more coverage and established companies can negotiate better rates.

Starting Out
Start with basic errors and omissions coverage limits that match your project values rather than maximum available limits. Choose per-claim deductibles over aggregate deductibles to reduce upfront costs when you're handling smaller clients. Focus on insurers specializing in your profession since they understand your specific liability exposures and price accordingly.
Expanding

Increase your professional liability limits gradually as your client contracts grow in value and complexity. Add cyber coverage to your professional liability policy when you start working with sensitive data or larger clients. Document your work and client communications carefully since many insurers offer discounts for businesses that can show they manage risks well.

Established

Leverage your professional experience and clean claims history to negotiate prior acts coverage at reduced rates. Consider purchasing extended reporting period coverage (tail coverage) only when necessary rather than automatically adding it to every policy renewal. Implement formal quality control procedures and professional development programs that many insurers reward with experience-based discounts.

Cost Strategies by Industry Risk Level

Every industry faces different professional liability risks, but there are ways to cut costs no matter your risk level.

High Risk: One mistake can cost clients millions

Mortgage brokers, lawyers, accountants, financial advisors, consultants
Look for insurers who focus on your profession since they understand what you actually face. You'll need higher coverage limits for potential six-figure client losses, but continuing education can earn you discounts that help offset costs. Document all client advice well since good records help during claims and can lower your rates.

Medium Risk: Errors affect projects, deadlines and budgets

Buy coverage that matches your projects' worth rather than going for maximum limits. Bundle professional liability with general liability when mistakes in your line of work often affect both areas. Look for insurers who get your industry's ups and downs, like busy seasons and common claim issues.

Low Risk: Mistakes rarely cause major financial harm

Stick with basic coverage since professional liability claims happen less frequently in these industries. Try newer online insurers that make low-risk coverage simple and cheap. You can handle higher deductibles since serious claims don't happen often in your business.

Preventing Professional Liability Claims

Preventing claims saves you more money than any discount. Each profession faces specific types of lawsuits, and knowing what goes wrong in your field helps you avoid expensive mistakes.

Tax preparation errors, missed deadlines, calculation mistakes
Double-check all calculations and use current tax software. Be clear about what services you handle versus what clients do themselves. Send deadline reminders early and note when clients don't provide the required information on time.
Missed statute of limitations, conflict of interest, inadequate representation
Set up calendar systems with multiple deadline alerts to avoid missing court dates. Run thorough conflict checks before taking new clients and keep detailed case records. Stay in regular contact about case progress and get client decisions in writing.
System failures, data loss, project delays, security breaches
Back up client data in multiple places and test that you can restore it. Build buffer time into project schedules and tell clients about potential delays early. Get approval in writing for any changes to avoid arguments about what you promised to deliver.
Financial Advisors
Investment losses, unsuitable recommendations, disclosure failures
Write down what risks your clients are comfortable with and match investments to their goals. Explain investment risks clearly in writing and keep good records of client meetings. Check portfolios regularly and let clients know when market changes might affect their money.
Project delays, quality defects, cost overruns
Write contracts that spell out exactly what work you'll do and when you'll finish. Take photos as you work and get written approval for any changes. Tell clients right away about delays from weather or permit problems.

Cheapest Professional Liability Insurance: Bottom Line

The Hartford, NEXT Insurance and Progressive Commercial consistently offer the most competitive professional liability rates, but your final cost depends on your industry, coverage choices and claims record. Getting affordable E&O coverage requires strategic shopping, smart coverage decisions and avoiding claims altogether.

Cheap Professional Liability Insurance Chart

Affordable Professional Liability Insurance: FAQ

We answer common questions about affordable professional liability insurance costs and coverage:

What is the cheapest professional liability insurance company?

How much does professional liability insurance cost per month?

Do I actually need professional liability insurance?

How do professional liability and E&O insurance differ?

Are there ways to lower professional liability insurance premiums?

What coverage limits do I need for professional liability insurance?

Which industries pay the most for professional liability insurance?

How We Determine the Cheap Professional Liability Insurance Companies

Finding cheap professional liability insurance that actually protects you isn't easy. Many companies advertise low rates, but the real cost often changes once you get a quote.

What We Did

We called 10 different insurance companies and asked for quotes using the same business details every time. This way, we could see which companies really offer the best deals.

The Business We Used for Quotes:

  • Owner plus two employees
  • Makes $300,000 per year
  • Pays $150,000 in wages
  • Has insurance already (not a brand new business)
  • Wants $1 million coverage per claim and per year

Most small professional service businesses look something like this. We only looked at insurance companies that give quotes online and work with smaller businesses, not those that only want big corporate clients.

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.

Read Full Bio »

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