Get the professional liability insurance your business needs. Compare the best professional liability insurance policies and choose the best one for you.
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Professional liability insurance protects you from financial losses when clients claim your professional services caused them harm due to errors, omissions, negligence, or failure to meet professional standards. Also known as errors and omissions insurance (E&O insurance), it covers legal defense costs, settlements, and court judgments related to service-based claims, not physical injuries or property damage.
Unlike general liability insurance, which covers physical injuries and property damage, professional liability insurance applies specifically to advice-based or service-related claims. Even if a claim is unfounded, defending yourself can cost tens or hundreds of thousands of dollars. Professional liability insurance helps cover legal defense costs, settlements, and court judgments so you’re not paying out of pocket.
This type of coverage is essential for service professionals, consultants, and businesses whose value lies in expertise, accuracy, and judgment rather than physical products. And with a 17% increase in the number of professional liability claims filed in 2023 over the prior year, this protection is becoming increasingly important.
 | Coverage tailored to your business |
Professional liability insurance works by stepping in financially when a client alleges that your services caused them harm. Most policies follow a claims-made structure, meaning coverage applies only if both the incident and the claim occur while the policy is active.
Here’s how the process typically works:
You’re usually responsible for a deductible before coverage applies, so you’ll want to consider deductible amounts when comparing plans. Because claims can arise months or even years after work is completed, maintaining continuous coverage is critical.
If you're leaving your profession or no longer working as a business owner or freelancer and won't need protection for new work, purchasing tail coverage protects you against future claims for work performed while your policy was active.
Professional liability insurance covers financial losses resulting from claims that your professional services caused harm. This includes allegations of errors, omissions, negligence, misrepresentation, missed deadlines, or failure to meet professional standards, as well as the legal defense costs, settlements, and court judgments associated with those claims.
Typical coverage includes:
What professional liability insurance doesn’t cover:
This distinction makes errors and omissions insurance especially important for professionals whose work carries financial or reputational consequences.
 | Tailored business insurance |
Professional liability insurance costs vary based on your profession, risk level, revenue, claims history, and coverage limits, but most small businesses and freelancers pay between $30 and $60 per month. Higher-risk industries such as healthcare, engineering, and legal services typically pay more due to increased claim exposure.
Average costs:
Factors that affect cost:
While E&O insurance may feel expensive upfront, one uncovered lawsuit can easily exceed years of premiums. Many professionals view it as cost control rather than an added expense.
 | Customizable policies |
The best professional liability insurance companies offer strong claims support, clear coverage terms, and experience with your specific profession. Choosing the right provider ensures your coverage works when you actually need it.
Key factors to evaluate include the insurer’s claims handling reputation, industry expertise, policy flexibility, transparent pricing, and ability to bundle professional liability insurance with other business coverage.
When evaluating professional liability insurance companies, consider:
The best insurers don’t just sell policies—they actively understand your business risks and help you manage them. Professional liability insurance policies are being increasingly personalized to protect against the industry-specific threats that professionals in a variety of industries face.
| Provider | Coverage Flexibility | Claims Experience | Policy Access Model |
|---|---|---|---|
| The Hartford | Highly customizable policies designed around business risk and size | Dedicated in-house claims handling with long-standing processes | Direct insurer |
| ERGO / NEXT | Profession-based coverage with configurable limits | Streamlined, digital-first claims process | Direct insurer |
| Hiscox | Customizable professional liability policies with flexible limits | Well-established claims handling for service professionals | Direct insurer |
| Progressive | Standardized coverage options through multiple carriers | Claims handled through insurer or partner networks | Direct insurer / carrier network |
| Tivly | Coverage varies by matched carrier | Claims experience depends on selected insurer | Insurance marketplace |
| Berxi | Specialized coverage for licensed and regulated professionals | Industry-focused claims support | Direct insurer |
| Commercial Insurance Center | Coverage tailored with agent assistance | Claims supported through agent and carrier | Broker / agency |
| Simply Business | Coverage varies based on selected insurer | Claims handled by chosen carrier | Insurance comparison platform |
You might need professional liability insurance if clients rely on your expertise, advice, or professional judgment. Even a minor mistake, miscommunication, or unmet expectation can result in a lawsuit, regardless of whether you acted correctly.
Many contracts also require proof of insurance professional liability before work begins.
Common situations that lead to claims include:
In many industries, clients require proof of insurance professional liability before signing contracts. Without coverage, you may lose business opportunities or expose yourself to serious financial risk.
"The biggest misconception is that professional liability insurance is only for ‘big mistakes.’ In reality, claims often come from misunderstandings, missed expectations, or allegations of negligence, even when you did everything right. It’s less about guilt and more about the cost of defending your work."
Professional liability insurance protects more than just your finances. It protects your ability to keep operating.
Key reasons it matters:
For freelancers, consultants, and small firms, errors and omissions insurance can be the difference between surviving a dispute and closing your business.
| 200+ years of experience |
"Professional liability premiums can feel like just another expense until you face a real allegation. One lawsuit can trigger attorney fees, expert costs, and lost income, even if you ultimately win. The right coverage turns a potentially business-ending event into a managed process with defense support and financial protection."
Based on discussions among professionals on Reddit, there is broad agreement that no single professional liability insurance company is best for everyone. The right choice depends on your profession, risk exposure, and how well the policy matches the services you provide.
At BestMoney.com, we understand the importance of making informed financial decisions. Our team of financial experts and editors conducts thorough research across lending, banking, home loans, personal finance, and insurance to provide you with comprehensive comparisons and insights. We continuously update our content to reflect the latest market trends and offerings, ensuring you have access to current, reliable information.
We offer a wide range of services including detailed comparison tools and expert reviews, all designed to meet your specific financial needs. Our mission is to empower you to make confident, well-informed choices that help you achieve your financial goals.
To evaluate professional liability insurance providers, we focused on the factors that matter most when choosing coverage for service-based businesses. Our review combined policy analysis with real-world insights to reflect how coverage decisions are made in practice.
Professional liability insurance is essential if your income depends on expertise, judgment, or advice. Whether you call it E&O insurance, insurance professional liability, or errors and omissions coverage, its role stays the same: protecting you from the financial fallout of professional mistakes and claims.
In an increasingly litigious business environment, professional liability insurance isn’t just a safeguard. It’s a growth enabler.
Do I need professional liability insurance?
Yes, you need professional liability insurance if you provide professional services, advice, or expertise where clients rely on your judgment. Even a small mistake, miscommunication, or unmet expectation can lead to a claim that results in significant legal and defense costs. If your work involves recommendations, analysis, or specialized knowledge, professional liability insurance is essential protection.
How do I get professional liability insurance?
You can get professional liability insurance by identifying your profession and risk exposure, selecting appropriate coverage limits, and purchasing a policy from a licensed insurer or broker. Most professional liability insurance companies allow you to compare quotes and buy E&O insurance online in minutes, making it easy to secure coverage before working with clients.
What is the difference between professional liability and general liability insurance?
Professional liability insurance covers financial losses caused by mistakes, errors, omissions, or negligence in your professional services, while general liability insurance covers bodily injury, property damage, and advertising-related claims. If you provide services rather than physical products, professional liability insurance is critical, and many businesses carry both policies for complete protection.
What are the most common types of professional liability claims?
The most common professional liability claims occur when clients believe your services caused them financial harm. These claims often involve errors or omissions in professional work, negligent advice, missed deadlines, misrepresentation, or failure to meet contractual obligations. Many claims arise even when you acted in good faith, which is why errors and omissions insurance is so important.
| Coverage tailored to your business |
Best for: Customizable coverage from a long-established insurer
Founded in 1810, The Hartford is one of the oldest insurance companies in America. Their policies can be easily customized so you can get the exact coverage you need for your industry and situation and don’t pay for anything you don’t need. Policy prices range from $38 to $239 per month.
Pros:
Cons:
Why we chose: The Hartford's extensive experience and highly customizable policies make it ideal for businesses seeking tailored professional liability coverage that fits their specific industry needs.
| Insurance in under 10 min |
Best for: Fast, fully online coverage
ERGO / NEXT offers fast, fully online coverage starting as low as $19 per month. If you also need general liability, they offer discounts for bundled policies. They have over 100 licensed agents to serve you and have a median claim resolution time of 15 days.
Pros:
Cons:
Why we chose: ERGO / NEXT offers a completely digital experience from quote to purchase to policy management, ideal for businesses that prioritize speed and convenience over phone-based service.
| Customizable policies |
Best for: Flexible professional liability policies
With Hiscox you can get a quote and purchase a policy online starting as low as $23 per month. They offer bundling discounts and specialize in covering work done worldwide, so long as the claim is filed in the US. They offer tailored coverage for a wide range of industries, and you can report a claim online or by phone.
Pros:
Cons:
Why we chose: Hiscox provides flexible contact options and specialized coverage across diverse industries, including worldwide work coverage, making it ideal for businesses with varied service needs and international clients.
