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Best business insurance companies
What is professional liability insurance?
What does professional liability insurance cover?
What does professional liability insurance not cover?
Who needs professional liability insurance?
How much does professional liability insurance cost?
How much professional liability insurance coverage do you need?
Does professional liability insurance cover past work?
How to get professional liability insurance
Best business insurance companies
Professional Liability Insurance: What It Covers, Best Options
Updated Jan 20, 2026
Expert verified
+ 1 more
Professional liability insurance protects you if a client says you made a mistake or gave them bad advice. It’s also known as errors and omissions insurance.
If you provide services for a fee, you should have professional liability insurance. Here are some top options to consider, plus more information about this coverage.
Chubb
Best for Overall professional liability insurance
Pros
- Simple online shopping experience that most businesses can likely complete in a few minutes.
- BOP includes business interruption and extra expense coverage.
- Fewer complaints than expected about liability coverage and far fewer than expected about property coverage.
Cons
- If you have more than $2 million in annual revenue, you'll need to talk with an agent or shop elsewhere.
- Can’t get commercial auto insurance online.
Chubb sells professional liability insurance online to businesses with less than $2 million in revenue. Otherwise, you’ll need to work with an agent. Our editorial team gives Chubb high marks for its financial strength and its shopping experience. It also earned above-average marks for customer satisfaction in J.D. Power's 2025 U.S. Small Commercial Insurance Study.
- General liability insurance.
- BOP.
- Business property insurance.
- Business interruption insurance.
- Professional liability insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
Chubb sells professional liability insurance online to businesses with less than $2 million in revenue. Otherwise, you’ll need to work with an agent. Our editorial team gives Chubb high marks for its financial strength and its shopping experience. It also earned above-average marks for customer satisfaction in J.D. Power's 2025 U.S. Small Commercial Insurance Study.
- General liability insurance.
- BOP.
- Business property insurance.
- Business interruption insurance.
- Professional liability insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
Chubb sells professional liability insurance online to businesses with less than $2 million in revenue. Otherwise, you’ll need to work with an agent. Our editorial team gives Chubb high marks for its financial strength and its shopping experience. It also earned above-average marks for customer satisfaction in J.D. Power's 2025 U.S. Small Commercial Insurance Study.
The Hartford
Best for E&O alongside a BOP
Pros
- Fewer complaints than expected filed with state regulators about both liability and property insurance.
- You can add data breach, professional liability and business income for off-premises utility service coverage to The Hartford's business owner's policy.
- You can add an additional insured and request a certificate of insurance online.
Cons
- No coverage available in Alaska or Hawaii.
- Not all businesses can get a quote online.
If you need E&O coverage and a business owner’s policy, consider buying both from The Hartford. It lets you get them simultaneously. You can get an E&O insurance quote from The Hartford online, but you may have to talk to someone on the phone to complete your purchase.
- Business owner's policies.
- General liability insurance.
- Professional liability insurance.
- Workers’ compensation insurance.
- Commercial property insurance.
- Business income insurance.
- Data breach insurance.
- Commercial umbrella insurance.
- Commercial auto insurance.
- Employment practices liability insurance.
- Liquor liability insurance.
If you need E&O coverage and a business owner’s policy, consider buying both from The Hartford. It lets you get them simultaneously. You can get an E&O insurance quote from The Hartford online, but you may have to talk to someone on the phone to complete your purchase.
- Business owner's policies.
- General liability insurance.
- Professional liability insurance.
- Workers’ compensation insurance.
- Commercial property insurance.
- Business income insurance.
- Data breach insurance.
- Commercial umbrella insurance.
- Commercial auto insurance.
- Employment practices liability insurance.
- Liquor liability insurance.
If you need E&O coverage and a business owner’s policy, consider buying both from The Hartford. It lets you get them simultaneously. You can get an E&O insurance quote from The Hartford online, but you may have to talk to someone on the phone to complete your purchase.
Travelers
Best for Working with an agent
Pros
- Offers many types of commercial insurance, including specialized coverage like key person insurance and surety bonds.
- You can access your certificate of insurance and track your claims through an online portal.
- Fewer complaints than expected about liability coverage and property coverage.
Cons
- You can’t get a quote or purchase a policy online.
Travelers can add professional liability insurance onto a business owner’s policy (BOP) — sometimes for no extra cost. This large insurer can also offer specialized coverage for high-risk industries. Use the Travelers website to find an independent agent near you.
- General liability insurance.
- BOP.
- Business income and extra expense coverage.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Workers’ comp.
- Cyber insurance.
- Management liability insurance.
- Employment practices liability insurance.
- Umbrella insurance.
- Equipment breakdown insurance.
- Specialized coverage for industries like agriculture and energy.
Travelers can add professional liability insurance onto a business owner’s policy (BOP) — sometimes for no extra cost. This large insurer can also offer specialized coverage for high-risk industries. Use the Travelers website to find an independent agent near you.
- General liability insurance.
- BOP.
- Business income and extra expense coverage.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Workers’ comp.
- Cyber insurance.
- Management liability insurance.
- Employment practices liability insurance.
- Umbrella insurance.
- Equipment breakdown insurance.
- Specialized coverage for industries like agriculture and energy.
Travelers can add professional liability insurance onto a business owner’s policy (BOP) — sometimes for no extra cost. This large insurer can also offer specialized coverage for high-risk industries. Use the Travelers website to find an independent agent near you.
Ergo Next
Best for Buying coverage online
Ergo Next is an online insurance company with a straightforward quoting and purchase process. Previously known as just “Next,” it rebranded as “Ergo Next” in January 2026. This was after its acquisition in 2025 by Ergo, a large German division of insurance giant Munich Re. Ergo Next is a great choice for sole proprietors and owner-operators who need coverage fast.
- General liability insurance.
- BOP.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Tools and equipment insurance.
- Commercial property insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
- Liquor liability insurance.
- Product liability insurance.
- Contractor license bonds.
Ergo Next is an online insurance company with a straightforward quoting and purchase process. Previously known as just “Next,” it rebranded as “Ergo Next” in January 2026. This was after its acquisition in 2025 by Ergo, a large German division of insurance giant Munich Re. Ergo Next is a great choice for sole proprietors and owner-operators who need coverage fast.
- General liability insurance.
- BOP.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Tools and equipment insurance.
- Commercial property insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
- Liquor liability insurance.
- Product liability insurance.
- Contractor license bonds.
Ergo Next is an online insurance company with a straightforward quoting and purchase process. Previously known as just “Next,” it rebranded as “Ergo Next” in January 2026. This was after its acquisition in 2025 by Ergo, a large German division of insurance giant Munich Re. Ergo Next is a great choice for sole proprietors and owner-operators who need coverage fast.
Hiscox
Best for Firms with international clients
Pros
- Can get a quote and purchase some policies online.
- Discounts of up to 5% available when you buy two or more Hiscox products, plus a 14-day money-back refund policy.
- Professional liability policies cover work done anywhere in the world.
Cons
- Far more complaints than expected filed with state regulators about both liability and property coverage.
- No coverage available in Alaska; business owner's policies are unavailable in several states.
Professional liability insurance policies from Hiscox cover work done all over the world, as long as the claim is filed in the U.S. or Canada. Retroactive coverage, which protects your business against claims arising from the period before you bought your policy, may also be available. You’d need to have had insurance from a different provider at the time of the incident to be potentially eligible.
- General liability.
- Professional liability.
- Business owner's policy.
- Cyber insurance.
Professional liability insurance policies from Hiscox cover work done all over the world, as long as the claim is filed in the U.S. or Canada. Retroactive coverage, which protects your business against claims arising from the period before you bought your policy, may also be available. You’d need to have had insurance from a different provider at the time of the incident to be potentially eligible.
- General liability.
- Professional liability.
- Business owner's policy.
- Cyber insurance.
Professional liability insurance policies from Hiscox cover work done all over the world, as long as the claim is filed in the U.S. or Canada. Retroactive coverage, which protects your business against claims arising from the period before you bought your policy, may also be available. You’d need to have had insurance from a different provider at the time of the incident to be potentially eligible.
What is professional liability insurance?
Professional liability insurance is business insurance that protects you from lawsuits filed by the people to whom you provide services.
In general, if you have clients, they might sue you if they’re dissatisfied with your work. For example, a client might accuse you of overlooking deadlines, costing them additional money. Professional liability insurance can cover costs related to such a lawsuit.
What does professional liability insurance cover?
Professional liability insurance covers the cost of defending your business against claims in court. If you have to pay a settlement, it can cover that too.
Professional liability insurance protects your business whether or not legal claims have merit, so you should be protected even if a lawsuit is frivolous.
Here are some examples of when professional liability insurance can protect you:
- Professional negligence or failure to meet a standard of care. Say an architecture firm designs a branch for a local bank. A year later, a customer sues the bank because its bathrooms don’t comply with the Americans with Disabilities Act. The bank could sue the architecture firm for not adhering to professional standards.
- Failure to deliver a promised service on time. Say a manufacturing plant hires an IT consultant to upgrade its cybersecurity. The consultant promises to finish by the end of the year, but they can’t stick to that timeline. In January — after the project’s agreed-upon completion date — the plant gets hacked. The plant could sue the consultant for the costs of recovering from the security breach.
- Breach of contract. For example, an insurance agency’s contract says it will help clients settle claims. But, when the time comes, it doesn’t have enough staff to provide that service. Clients could claim the agency violated that contract.
- Errors. For example, an accountant reviews a business’s tax returns but misinterprets a new tax law. The IRS audits the business and finds that it owes back taxes, plus interest and penalties. That business could sue their accountant for the error.
- General misconduct. Say a college professor routinely grades one student harder than their peers. That student can’t graduate on time as a result. They or their parents might file a claim against the educator.
- Medical malpractice. Medical professionals should have this specific type of professional liability insurance. It protects against claims that they made mistakes that resulted in injury or death. Learn more about medical malpractice insurance here.
What are the most common professional liability insurance claims?
That depends on your industry. Certain types of work are more prone to claims, and certain types of claims have bigger losses.
Here are examples from a few large industries:
- Technical errors.
- Project management errors, like poorly negotiated contracts.
- Poor communication or documentation
- Technical errors.
- Project management errors, like poorly negotiated contracts.
- Poor communication or documentation
- Filing errors.
- Failure to give advice or improper advice.
- Failure to detect theft or fraud
What does professional liability insurance not cover?
Professional liability doesn't protect a business against:
- Certain employee lawsuits. Allegations like wrongful termination or workplace harassment don’t fall under professional liability. For those, a business will need employment practices liability insurance.
- Data breach or cyberattack claims. You’ll need cyber insurance to protect against that risk.
- Fraud or criminal action. If you or one of your employees commits a crime or intentionally misleads a client, the resulting professional liability claim isn’t covered.
Who needs professional liability insurance?
Any business that provides professional services or advice to clients for a fee should have professional liability insurance. This list can include:
- Accountants.
- Architects.
- Consultants, including management and IT consultants.
- Engineers.
- Financial or investment advisors.
- Insurance and real estate agents and brokers.
- Software developers and graphic designers.
A single policy can cover you, your business entity and your employees. Independent contractors will need their own insurance. Individual coverage is also a legal necessity for some professions.
For instance, some states require medical professionals to carry medical malpractice insurance. Those policies specifically protect physicians, dentists, nurses, psychologists and other medical professionals against claims that they made a mistake that led to a patient’s injury or death.
State licensing bodies may also require lawyers to carry legal malpractice insurance or to tell clients whether or not they have it.
Professional liability insurance vs. general liability insurance
If you provide services to customers for a fee, you should get professional liability insurance. And NerdWallet recommends that pretty much all businesses carry general liability insurance.
People not affiliated with your business typically make general liability insurance claims. Those policies protect your business if you or your employees are accused of the following:
- Causing property damage.
- Causing bodily injury.
- Libel or slander.
Professional liability insurance protects against claims like bad advice or negligence, which are usually made by your customers or clients.
Most major commercial insurers sell both general liability and professional liability insurance. They’re two separate policies. But if you’re shopping for insurance online, you can probably buy both at the same time.
How much does professional liability insurance cost?
The median cost of professional liability insurance is $61 per month or $735 per year, according to online insurance marketplace Insureon
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Costs can vary widely, though.
For example, construction businesses with less than $1 million in revenue may pay up to $5,000 per year for professional liability coverage, according to data the online brokerage Coverdash shared with NerdWallet. For technology businesses, the maximum premium is about half that ($2,400). That’s because claims are more common in construction.
Premium costs also depend on:
- The location where you work and how common claims are there.
- How much coverage you need.
- How many employees you have.
- How long you’ve been in business.
- What kind of claims, if any, you’ve filed in the past.
- Your policy limit and deductible.
How much professional liability insurance coverage do you need?
The right amount of professional liability insurance varies. States that require it may have set minimums. For instance, health professionals in Kansas must have policies that cover at least $500,000 per claim and $1,500,000 per year
[5]
When coverage isn't required, try to balance the annual cost of your policy with potential costs if a client sues you. You'll want enough to pay for any legal defense costs you couldn't handle out of pocket.
If you work in a high-risk industry, like construction or tax services, consider higher limits that could help cover settlement costs. Higher limits generally increase your premiums. But if you end up owing a judgment, it may be cheaper in the long run.
How much in damages will your professional liability policy cover?
Coverage amounts depend on your individual policy. But each has two types of limits.
- Per-occurrence limit: The maximum the policy will pay for any one claim.
- Aggregate limit: The maximum the policy will pay over its term. This is equal to or higher than the per-occurrence limit.
Your policy will display these numbers like “$500,000 / $1,000,000.” That policy would cover up to $500,000 in damages for a claim. But it won’t cover more than $1,000,000 for the policy period. That’s typically one year. When your policy renews, the limit resets.
Does professional liability insurance cover past work?
Typically, yes. But it depends on which of these two policy types you have:
- Claims-made policies: If a claim is filed against you while you have this policy, it provides coverage. It doesn’t matter when the actual incident took place. This is normal for professional liability insurance.
- Occurrence policies: These policies cover claims for work you did while the policy was in effect. They still protect you even if the claim is filed after you cancel your policy. This is more common in general liability insurance.
One last thing to look for: prior acts coverage. Policies with a prior acts date or retroactive date cover claims after that date. Anything before it isn’t covered.
For instance, say your professional liability policy runs from Jan. 1, 2026, through Dec. 31, 2026. During that time, a client sues you for work you did in 2024. A claims-made policy would still cover you. But it wouldn’t if the insurer included a prior acts date of Jan. 1, 2026.
Policies that cover longer time periods tend to be more expensive.
How to get professional liability insurance
Follow these steps to get a professional liability insurance policy:
- Find out what coverage you must have. Does a state, licensing board or client require that you have a certain type or amount of coverage? If you belong to a professional association, they probably have this information.
- Decide how much coverage you need. You’ll need this information when you start getting quotes, since it affects the price of your policy. Is a baseline level of coverage enough, or is your industry prone to expensive lawsuits? Have you been operating for a while without insurance and want coverage for past events?
- Get an agent, if you want one. If you want someone else to handle the rest of this process, find an agent or broker. They’ll ask questions about your business, get you quotes from several insurance companies and then help you buy a policy. Working with an agent may be slower and a little more expensive than buying coverage online, but their expertise may be worth it.
- Get multiple quotes. Every insurance company has its own pricing formulas, which means each will charge you a different price.
- Compare coverage. It’s easy to see which policy charges the lowest premiums. But double-check the policy limits and deductible, along with the period of time it covers. Compare exclusions, too — one policy might cover a situation that another policy does not.
Methodology
Business insurance ratings methodology
NerdWallet rewards business insurance companies for reliability and good service. We calculate star ratings based on scores in about a dozen categories. These include:
- Each company's financial strength.
- How many complaints customers made relative to its market share.
- How easy it is to get coverage.
- How accessible customer service is.
Learn more about how we rate small-business insurance companies.
Our editorial team routinely fact-checks and updates these data points. We also adjust our scoring on an ongoing basis. This helps our star ratings reflect changing industry norms. For instance, in 2026, we began evaluating how easy insurers make it to add an additional insured.
Our ratings are a guide. But insurance policy details and prices can vary widely. We encourage you to shop around and compare several insurance quotes.NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
One key factor in our star ratings is how many complaints insurance companies get. Here's how we arrive at that score.
Disappointed customers can file a complaint with their state's insurance department. The National Association of Insurance Commissioners (NAIC) collects, analyzes and groups complaints by business line and insurance company every year. A business line is a specific type of coverage, like workers’ comp.
Then, the NAIC calculates a complaint ratio for each company. It divides the company's share of complaints by its share of total premiums for each line of business. It then adds these ratio values to their official complaint index.
- A complaint ratio of 1 means a company received about the expected number of complaints relative to its size.
- A ratio of 2 means it received twice as many complaints as expected.
- A ratio of 0 means it received half as many complaints as expected.
NerdWallet obtains the raw NAIC data every year. We aggregate results at the company level and fact-check these results. Then we calculate a three-year average of each insurer's complaint ratio and convert it to a score for our star ratings.
Business insurance star ratings consider complaints about two lines of business: commercial liability and commercial property. We analyze complaint data on commercial auto and workers' comp policies too. But we don't currently incorporate these into our ratings since they're less universal.