Excelling in both affordability and overall quality, Next offers the best and cheapest professional liability insurance for consultants. For LLCs with 20 employees, the average cost is $207 per month, while sole proprietors without employees can expect a cost of just $35 monthly. Professional liability insurance is a key safety net, protecting consultants against potential lawsuits related to professional advice or services, and Next is our standout choice for coverage.
Overall Best Professional Liability Insurance for Consultants
Next stands out as the best professional liability insurer for consultants. Next earned a MoneyGeek score of 97 out of 100, the highest on our list, based on its affordability, strong customer satisfaction and swift quote time. In the table below, you'll find the MoneyGeek scores and costs for all of the companies on our list for comparison.
Exceptional affordability for LLCs and sole proprietors
Quick quote time
High customer satisfaction
Moderate financial stability
Limited range of coverage options
Next has emerged as a top choice for consultants seeking professional liability insurance thanks to its strong customer satisfaction and affordability. While the financial stability, based on its A- AM Best rating, may be moderate compared to other insurers, Next makes up for it with the speed of its quote process, clocking in at just one minute and 18 seconds. Its offerings may be limited in variety, but the pricing is compelling: just $207 monthly for LLCs with 20 workers and $35 for sole proprietors without employees. Despite the cons, Next's cost-efficient solutions likely attract and satisfy many in the consulting industry.
Cheapest Professional Liability Insurance for Consultants
Next is the cheapest insurer overall for consultants, with an average monthly cost of $207 for LLCs with 20 employees and $35 for sole proprietors. Our affordability score combines costs for both sole proprietors and LLCs, placing Next at the top.
Highly affordable for LLCs and sole proprietors
Quick quote process
High customer satisfaction
Less robust financial stability
Limited total coverages offered
Next Insurance, as the most cost-effective insurer for consultants, presents a blend of affordability, customer satisfaction and efficiency in their quote process. However, they have a lower financial stability rating than other insurers on our list (A- from AM Best) and offer fewer coverages compared to some competitors. Specializing in tailoring policies for small businesses and entrepreneurs, Next is a digital-forward company, providing an easy, fast and seamless insurance experience, particularly prized by cost-conscious consultants.
Best Professional Liability Insurance for LLC Consultants With 20 Employees
The Hartford shines as the premier professional liability insurer for consultants operating as LLCs with 20 employees. Earning a MoneyGeek score of 99 out of 100, it provides top-tier coverage for these entities. With an average monthly cost of $282, The Hartford's comprehensive and reliable insurance offerings make it the standout choice for larger consulting firms seeking peace of mind and financial protection.
Excellent affordability for LLCs
High financial stability
Comprehensive coverages offered
Longer time to get a quote
The Hartford is a top-tier choice for consultants. Its professional liability insurance for consultants is noted for its excellent affordability, particularly for LLCs. This, combined with its commendable customer satisfaction ratings and high financial stability, rooted in an A+ AM Best rating, solidifies The Hartford's position as a superior insurance provider. While obtaining a quote may take slightly longer (approximately 1 minute and 53 seconds), the trade-off is worth the comprehensive coverage the insurer offers.
Best Professional Liability Insurance for Sole Proprietor Consultants
Next is the best professional liability insurer for consultants operating as sole proprietors without employees. With a MoneyGeek score of 97 out of 100 for such business structures, it provides outstanding coverage at an affordable rate. At an average monthly cost of just $35, Next offers sole proprietor consultants a financially sound and secure insurance solution, making it the best choice in this category.
Top-notch affordability for sole proprietors
Quick quote generation
Stellar customer satisfaction ratings
Somewhat unstable financial standing
Limited range of coverage options
Next's professional liability insurance stands out for sole proprietor consultants, primarily due to its unmatched affordability and high customer satisfaction. Its quote generation is swift, at around one minute and 16 seconds, making it an efficient choice. However, its financial stability, reflected by an A- AM Best rating, and a somewhat limited range of coverages can be areas for improvement. Despite these minor drawbacks, Next remains a preferred insurer for individual consultants, offering cost-effective liability protection.
Best Professional Liability Insurance for Fast Quotes for Consultants
Thimble takes the lead for consultants seeking fast, online insurance quotes. Clocking in with an average quote time of just 55 seconds, Thimble is unrivaled in its speed among the professional liability insurers we've analyzed.
Fastest quote generation
Affordable for sole proprietors
Strong financial stability
Limited affordability for LLCs
Lower customer satisfaction rating
Could offer more coverages
Thimble stands out for its 55-second average quote time and A AM Best rating, marking it as a quick and reliable choice. It also includes cyber liability insurance with its coverage. However, while its $61 monthly cost is appealing for sole proprietors, the $2,750 monthly cost for LLCs with 20 employees could be steep. With room for improvement in customer satisfaction and coverage options, Thimble remains viable, particularly for consultants valuing speed and financial stability.
How Much Does Professional Liability Insurance Cost for Consultants?
The average monthly cost of professional liability insurance for consultants is $942.12 for LLCs with 20 employees and $92.67 for sole proprietors without employees. One of the critical determinants of the cost of professional liability insurance for consultants is the employee count. As the number of employees increases, so does the potential for claims related to professional errors or negligence, which in turn drives up the cost of insurance.
Other factors that impact the cost of professional liability insurance include:
- Industry and services: The nature of the consultant's industry and the specific services they provide can influence insurance costs. Industries or services associated with higher risk often result in higher premiums.
- Claims history: If a consultant or their firm has a history of professional liability claims, insurers may consider them a higher risk, leading to increased premiums.
- Coverage limits and deductibles: Higher coverage limits and lower deductibles can provide greater protection, but they also increase the cost of insurance.
- Geographical location: The consultant's location can impact insurance costs, as legal costs and risk profiles can vary regionally.
Understanding these factors can help consultants effectively manage their professional liability insurance costs while ensuring they have adequate protection.
Additional Business Insurance for Consultants
Apart from professional liability insurance, consultants may need several other types of business insurance to cover various risks associated with their operations:
- General liability insurance: This type of insurance protects against claims of bodily injury or property damage arising from your business operations. For example, if a client gets injured at your office, general liability insurance can cover legal costs and medical expenses.
- Workers' compensation insurance: If your consultancy employs staff, you'll likely need workers' compensation insurance. It covers medical costs and lost wages if an employee gets injured or falls ill due to work-related activities.
- Cyber liability insurance: With increasing reliance on digital tools and data, consultants need to safeguard against cyber threats. Cyber liability insurance covers losses due to data breaches or cyberattacks.
- Commercial property insurance: If you own or lease office space, commercial property insurance is essential. It protects your physical assets like office equipment, furniture and buildings against damage or losses from fires, storms or theft.
- Business interruption insurance: This covers loss of income if your business operations are disrupted due to a covered peril, such as a natural disaster.
Choosing the right combination of these insurance options can provide a comprehensive protection plan for consultants, offering financial stability and peace of mind.
FAQs About Professional Liability Insurance for Consultants
Understanding the nuances of professional liability insurance for consultants can be complex. We addressed some key questions to help you find the best and most cost-effective insurance providers, comprehend the coverage scope and clearly understand associated costs.
Next is the best overall insurer for consultants, offering rates of $207 per month for LLCs with 20 employees and $35 per month for sole proprietors. Next's strong performance in affordability and customer satisfaction sets it apart in the insurance landscape.
Next stands out as the most affordable insurer for consultants, with average monthly premiums of $207 for LLCs with 20 employees and a minimal $35 for sole proprietors, making it a cost-effective choice.
Professional liability insurance covers consultants against claims of negligence, errors or omissions made while providing professional services. This coverage can include legal fees, court costs and any damages awarded in a lawsuit.
On average, professional liability insurance costs $942.12 monthly for consulting LLCs with 20 employees and $92.67 for sole proprietor consultants. These figures illustrate the impact of business size on insurance premiums.
About Melissa Wylie
