Best Small Business Professional Liability Insurance Providers for 2019

Find out more about small business professional liability insurance providers with insurer rankings, ratings and FAQs.

Updated on November 18th, 2019

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Professional liability insurance, also known as professional indemnity, errors and omissions, or malpractice insurance, is a type of business insurance that is concerned with protecting professional service providers against civil lawsuits associated with their service. Professional liability insurance covers claims of negligence, mistakes, and omissions that may have occurred while providing services.

Read More:

Business Interruption Insurance - Learn more about insurance coverage providers for interruptions in business operations.

Small Business Insurance - Learn more about insurance providers for small businesses with 50 employees or less.

Small Business Health Insurance - Learn more about health insurance providers for small businesses.

Small Business Liability Insurance - Learn more about liability insurance providers for small businesses.

Why We Chose The Hartford:

The Hartford offers a wide range of insurance products so small businesses can use them to provide general small business insurance and not just liability insurance. The Hartford also offers bundle insurance savings and online calculation tools, as well as discounts and perks for qualifying businesses.

The Hartford has a superior AM Best Financial Rating of A+. This means that, according to AM Best, The Hartford is highly rated in their financial strength and well able to meet their insurance obligations. The Hartford will also provide you with a tailor-made quote, so all your insurance and financial needs are met.

To learn more about other providers of small business insurance, be sure to read our small business insurance guide.

Things to Consider When Evaluating Professional Liability Insurance Providers:

  1. Know the risks specific to your industry and carefully evaluate all the risks you may face.
  2. Work with top-rated insurance providers and prioritize your insurance needs over cost.
  3. Read the insurance policies thoroughly and evaluate the deductibles.

Best Professional Liability Insurance Providers:

Our Rank

Company

AM Best Financial Rating

Review

1.

The Hartford

A+

Offers a wide range of insurance products but has increasing premiums.

2.

CoverWallet

A

Offers hands-on policiy management with an intuitive dashboard.

3.

State Farm

A++

Has a wide range of insurance products but not all are available nation-wide.

4.

Geico

A++

Offers a wide variety of business insurance products with competitive prices.

5.

Nationwide

A+

Offers a wide variety of nation-wide coverage options.

6.

Allstate

A+

Offers good insurance options for small businesses but has high rates.

7.

Progressive

A+

Offers reasonable rates and bundles. Discounts are not always offered in all states.

8.

Landmark

A+

Offers risk management strategies as well as small business insurance.

9.

Chubb

A++

Offers a wide range of cyber policies.

10.

Hiscox

A

Offers industry-specific insurance coverage with transparent pricing.

11.

Next Insurance

A

Offers tailored coverage and all applications, claims, and payments are done online.

12.

AIG

A

Offers cyber insurance but only has 3 policy options.

13.

Liberty Mutual

A

Provides cyber insurance and coverage for third party liability claims but has a low annual limit.

14.

CNA Financial

A

A well-established company that provides a wide range of customizable coverage options.

15.

Travelers

A

Offers a wide range of insurance products with discounts and an affinity program available.

16.

Markel

A

Offers speciality insurance for unique and unusual, industry-specific business risks.

17.

Prime Insurance Company

A

Provides customizable solutions for personal and commercial speciality risks.

18.

The Hanover

A

Offers speciality coverage for small to mid-sized businesses in a wide variety of industries.

19.

Allied World Insurance

A

Offers a wide range of products both nationally and internationally.

20.

BCS

A-

Offers a wide range of insurance solutions, including ancillary income, large claim, speciality risk, and financial service solutions.

21.

Insureon

Not rated.

A third-party insurance market place with only a few types of quotes available online.

22.

Trusted Choice

Not rated.

Provides expert research into your insurance needs and coverage options but some policies exclude coverage of punitive damages.

23.

Proliability

Not rated.

Provides medical professional liability insurance as well as cyber liability insurance.

FAQs:

What is covered by professional liability insurance?

Professional liability insurance covers professionals and small businesses that provide advice or services against claims that allege negligence, mistakes, and omissions were committed. Coverage includes legal fees.

How much professional liability insurance do I need?

How much professional liability insurance a small business requires depends on several factors including the type of business and industry in which it operates, its location, and the size of the business. Professional liability insurance premiums can range from barely $300 to over $2,000 per annum.

Do I need professional liability?

In some states legal and medical professionals are required to have professional liability insurance. Professional liability insurance is strongly advisable for professionals and businesses that provide services to protect them financially against claims of negligence, omissions, and errors.

What is the difference between general and professional liability insurance?

General liability insurance generally covers risks such as physical injury and damage to property that may occur, while professional liability insurance covers negligence, mistakes, and omissions committed during service delivery such as failing to meet a contractual agreement or providing advice that resulted in a financial loss to a client.

What does professional liability insurance cost?

The cost of professional liability insurance varies depending on the type of business, industry, location, the number of employees, and more. Professional liability insurance premiums can range from barely $300 to over $2,000 per annum.

What makes lawyers' professional liability coverage different from other liability coverages?

General liability insurance typically covers physical injuries to third-parties and damages to property while professional liability insurance covers negligence, errors, and omissions associated with the professional service provided by a business. Some insurance providers offer professional liability policies tailored to the specific needs of legal professionals.

What is not covered by professional indemnity insurance?

Professional indemnity insurance, also known as professional liability, errors and omissions, and malpractice insurance, does not cover damage to property, illegal actions, intentional wrongdoing, discrimination, false advertising, and bodily injuries with the exception of medical malpractice insurance, which does cover bodily injuries.

What is contractors' professional liability insurance?

Contractors professional liability insurance protects against claims charging contractors for mistakes, omissions, or negligence committed by themselves and their third party hires while delivering design and building services.

What is consultant professional liability insurance?

Consultant professional liability insurance protects consultants against claims against their business charging them for mistakes, omissions, or negligence committed while providing services, such as providing bad advice that resulted in a financial loss to a client.

Yes, professional liability insurance includes legal costs in the limit of insurance.

What's the difference between public liability and professional indemnity?

Similar to general liability insurance, public liability insurance covers claims regarding physical injuries and damage to property while professional indemnity, also known as professional liability insurance, covers claims of negligence, errors, and omissions arising from professional services provided.

Who needs professional indemnity?

  • Medical professionals.
  • Legal professionals.
  • Accountants and bookkeepers.
  • IT professionals.
  • Real estate brokers and agents.
  • Insurance brokers and agents.
  • Marketing and advertising professionals.
  • Architects.
  • Designers.
  • Engineers.
  • Contractors.
  • Any type of consultants and counselors.

What is a student professional liability insurance?

Student professional liability insurance covers claims of negligence, errors, and ommissions a student may commit as an intern practicing a profession and delivering services.

What is the difference between D&O and E&O insurance?

Directors and officers insurance (D&O) is tailored to the needs of directors, officers, and executives and is largely concerned with management decisions. Errors and omissions insurance (E&O), or professional liability insurance, is concerned with claims associated with a professional service such as negligence, mistakes, and omissions that may occur.

Does E&O cover negligence?

Yes, errors and omissions insurance (E&O), also known as professional liability insurance, covers acts of negligence.

How does professional liability insurance work?

Professional liability insurance pays for lawsuits against a service provider that alleges failed service delivery or that errors, negligence, bad advice, or omissions occurred in the course of service delivery. Professional liability works on a claims-made basis, meaning that claims are only covered by the policy if they are made while the policy is active.

Is professional liability the same as malpractice?

Malpractice insurance is a type of professional liability insurance that is specific to health care professionals.