Professional Liability Insurance

Coverage for business mistakes and accusations of negligence

Choose your primary industry to get started:



Get a Quote
food and beverage

Food & Beverage

Get a Quote

Retail & E-Commerce

Get a Quote
Cleaning Insurance


Get a Quote
All Industries

Other Industries

Get a Quote
Return to Quote

Business mistakes and accusations of negligence can be costly without the right insurance. Professional liability insurance can help cover:

Business errors

Business errors

A client or customer accuses you of making a professional mistake that costs them money.

Claims of negligence

Claims of negligence

Someone claims your inaction or wrongdoing caused a financial loss or personal harm.



Someone accuses you of providing inaccurate information with your services.

Legal defense costs

Legal defense costs

You need to hire a lawyer to defend your business after you are accused of making a professional mistake.

Learn more about Professional Liability insurance:


What is Professional Liability insurance?

Professional liability insurance can help protect your business if you are accused making a professional mistake or negligence.

A client or customer can file a lawsuit against you if they think you did something to cause a financial loss. If you have a professional liability insurance policy, you could get financial help to defend your business or fix the mistake.

Professional liability is common coverage for professional services, such as accountants, consultants and real estate professionals.

However, many different types of businesses also buy this type of business insurance.

It is sometimes known as errors & omissions insurance or professional indemnity insurance.

Why is Professional Liability important?

Professional liability can help you resolve the issue quickly, avoiding customer confrontations and protecting your reputation if a customer claims you made a mistake — whether you did or not.

Your coverage can help you pay for expenses if you’re at fault for a mistake or professional negligence. It can also help pay for defense costs if you're falsely accused.

Who needs Professional Liability insurance?

Most business owners need professional liability coverage because it can provide protection from unexpected expenses if they are accused of a professional mistake.

Professional liability insurance is different for each profession and each claim is unique. Here are some examples of how it can help protect different types of businesses: 

Tax professional

Your client sues you for making a mistake that led to them losing out on significant tax advantages and paying more than they had to. Professional liability could help cover some of your defense costs.

Architects and engineers

A client alleges that a mistake you made in your designs led to the collapse of a stairwell and sues you for causing injuries. Your insurance could help cover the cost of damages if your business is at fault.

Real Estate

You show a furnished property to prospective buyers during an open house. One of them accidentally damages a wall. The property owner asks you to cover the repairs. Professional liability could provide financial help.

What does Professional Liability insurance cover?

There are two core areas where professional liability can help protect a small business from unexpected costs:

Your business mistakes

You can follow all the rules, do everything right and still make a mistake — it happens to almost everyone.

Professional liability insurance can help protect you from paying entirely out-of-pocket if you or your employees are accused of making a mistake that causes financial harm to another person or business.

Example: You're a property manager and the property owner claims you made repeated mistakes on the paperwork for transactions between tenants that cost $50,000.

The property owner sues you to get reimbursed. Your professional liability coverage could cover some expenses up to the policy limit.

Accusations of professional negligence

There are standards of service for every profession. Business owners are generally expected to act in the best interest of their clients. 

You might find yourself accused of professional negligence and forced to defend yourself if your business actions caused a financial loss for a client.

Example: You did nothing wrong, but a very angry client still wants to take you to court because they claimed you were negligent and did a terrible job. The legal battle draws out and your lawyers charge you $500,000 to fight a lawsuit that you ended up winning.

Your professional liability policy could cover some expenses up to the limits of your policy, including your lawyer and legal fees.

Start a free quote to explore your options.

What isn’t covered? 

Professional liability insurance coverage can provide help for a variety of situations, but it won’t protect you from all risks.

Here are a few examples where professional liability won’t protect your business:

Intentional wrongdoing & illegal activity: If you or one of your employees intentionally takes a shortcut that results in damage, neglects to comply with regulations or engages in bad behavior, you will most likely need to pay for any related costs out of pocket.

Property damage or bodily injury: General liability can help pay for expenses if your business is responsible for causing an injury to someone who is not an employee or damaging property that doesn’t belong to you.

False advertising: Professional liability won’t cover you If your marketing materials inadvertently contain misleading information about your product or services and you’re sued for false advertising.

Employee injuries: Workers’ compensation can help cover medical expenses and lost wages if an employee is involved in a work-related injury.

Car accidents: Commercial auto insurance can help cover expenses if you use a company vehicle and get into an accident.

How much does Professional Liability insurance cost?

Professional liability insurance can cost as little as $19 monthly. The exact price depends on the type of work you do and many other factors.

Learn more about the cost of professional liability insurance.

How do I get Professional Liability insurance?

NEXT offers coverage tailored to your business needs and the risks you face.

You can get a professional liability insurance quote online in about 10 minutes.

Here’s how the process works:

We’ll ask you some basic questions about your business and operations, including:

  • Your industry
  • Where you do business
  • How many years you have owned the business
  • Number of employees
  • Expected annual revenue
  • Recent insurance and claims history

After you share your information, you’ll have instant access to a customized insurance quote and other recommended coverage.

If you like what you see, you can adjust the package limits and make your purchase.

Your insurance will begin immediately after payment, and you’ll have access to your certificate of insurance.

Start a free instant quote today.

Compare Professional Liability insurance

We’ll walk you through the differences and similarities between professional liability and other types of coverage to help you make the best choice for your business.

Professional Liability FAQ

Learn about professional liability insurance with more frequently asked questions about our coverage.

Our licensed, U.S.-based insurance advisors are ready to help if you have additional questions.

When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase insurance within a few minutes.

What are the main differences between Professional Liability and E&O insurance?

Although they go by different names, professional liability and errors and omissions (E&O) insurance usually provide the same coverage.

They both help protect you when you’re accused of doing an incorrect or bad job.

Some industries commonly call the coverage professional liability, others call it errors and omissions. For example, the term professional liability is often used when describing insurance covering professional mistakes by accountants, consultants, engineers and architects.

E&O insurance is often used when describing this coverage for professions such as real estate agents and insurance agents.

Note: NEXT sells contractors E&O insurance designed specifically for construction trades. It provides different coverage than our professional liability coverage.

Does Professional Liability insurance cover my subcontractors or employees?

Your professional liability policy can cover your employees but only for the services they deliver for your business.

For example, if you own an architecture firm and one of your employees makes a project design mistake, causing costs and timelines to double, your professional liability insurance could help cover your legal fees if the client sues you.

Your contractors may be covered but it depends on the details of your specific policy. Review your policy documents carefully.

Is Professional Liability insurance legally required?

Professional liability insurance is typically not required by law.

If you work on high-cost projects, your clients may require you to carry insurance so you have financial protection in case of a lawsuit.

Can I add Professional Liability if I already have General Liability insurance or other coverage?

Yes, we offer up to a 10% discount when you add a professional liability policy to your insurance package with NEXT if you have existing coverage.

You can add professional liability insurance directly through your customer account.

Do you offer prior acts coverage?

It depends on your industry and business operations. 

In some cases, we may provide prior acts coverage for businesses that have maintained continuous professional liability coverage at similar or higher limits since the requested retroactive date.

Can I add an additional insured to my Professional Liability policy?

Yes, NEXT customers can easily add an additional insured and share their certificate of insurance with their customer account. 

Any person or company you add to your policy is called an additional insured. They are named on your COI.

Will my premium change or my policy be canceled if I file a claim?

No, we won’t alter your premium during the term of an active policy or cancel your coverage due to a claim. We understand that filing a claim is stressful enough without having to worry about it affecting your premium.

At the end of your policy period, however, we will review the details of your business and claims activity. If either has changed since you first applied, we may adjust the premium up or down.

How do I file a Professional Liability claim?

If you are a NEXT customer, you can file a claim with your account online.

After we receive your claim, we will call you to get additional details. You are also welcome to call us to report a claim: 855-222-5919.

If you are not a NEXT customer, you can report a claim in our help center or call us.

It is important to file professional liability claims as soon as possible.

NEXT Insurance reviews

Easy to process

Where other websites did not deliver on a timely manner, this was relatively easy to get a quote and finish the process in a few minutes after accepting it. It was also easy to mod...

Riccardo H.

Liability insurance

Very affordable

Jerry R.

Easy to use

Great! Set everything up and got the insurance needed for my business without hassle and it was very easy and quick to navigate

Myles C.


Good service, great prices for the coverages.

Chad S.

Very easy

I was very impressed by how thorough and simple the process was.

Yiseet C.

The Easiest Insurance Process Ever

Who knew that you could create a customizable insurance policy, so quickly and so easily? Don't put off getting your professional insurance policy. It will take you longer to run a...

Raven S.

Easy to process

Where other websites did not deliver on a timely manner, this was relatively easy to get a quote and finish the process in a few minutes after accepting it. It was also easy to mod...

Riccardo H.

Liability insurance

Very affordable

Jerry R.

Easy to use

Great! Set everything up and got the insurance needed for my business without hassle and it was very easy and quick to navigate

Myles C.


Good service, great prices for the coverages.

Chad S.

There’s a lot to love about NEXT

Business insurance in less than 10 minutes

Get insurance in less than 10 minutes and you can save up to 25% in discounts*

Tailored business insurance

Unique, flexible coverage with easy monthly payments

Get business insurance online

Do it all 100% online or talk to a licensed U.S.-based advisor

Next Insurance, small business insurance
Coverage on-the-go for policyholders
Manage your policies, send and create certificates of insurance, or file a claim with our app.
Download from app storeDownload from google play
Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
What we cover
Chat with Us

Mon – Fri | 8 a.m. – 5 p.m. CT

© 2024 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
Better Business Bureau
Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.