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Professional Liability Insurance

Insurance to back you up in a business disagreement

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Bungles, fumbles, faux pas — whatever you call them, mistakes and business disagreements can be costly without the right professional liability insurance.

Business errors

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

Missed deadlines

A customer says you didn’t complete a job, project or paperwork on time and wants you to pay for financial losses.

Accusations of negligence

Someone claims your inaction or wrongdoing caused damage to something or someone.

Here’s everything you need to know about professional liability insurance:


What is Professional Liability insurance?

Professional liability insurance protects your business against civil lawsuits and negligence claims related to professional mistakes, whether you actually made them or a client just thinks you did. 

Many companies sell a stand-alone professional liability policy while others sell it as part of an insurance package with general liability insurance. One advantage of buying both policies together is that you don’t need to worry about whether something should be covered as part of your general liability insurance or part of your professional liability insurance — you just get it covered. 

Who needs Professional Liability insurance?

Most businesses need professional liability coverage because it provides protection from unexpected expenses if you are accused of a professional mistake. 

Let’s say you’re a plumber installing a sink. You drop your heavy wrench and scratch expensive antique furniture. Most general liability policies would cover that property damage. 

Now, say you install the sink with no issue, but a month later the customer says you caused plumbing damage and they have to replace all their bathroom pipes. That’s where professional liability comes in.

Why is it important?

If a customer claims you made a mistake — whether you did or not — professional liability coverage can help you move on quickly, avoiding customer confrontations and protecting your reputation. 

If you’re ruled at fault for a mistake, missed deadline or professional negligence, Next insurance can help you cover expenses so you don’t have to pay for everything out of pocket. If you’re falsely accused, your coverage can help pay for defense costs.

What does Professional Liability insurance cover?

Professional liability business insurance (also known as errors and omissions, or E&O, insurance) helps pay for lawsuit costs and damages if your company is accused of work errors or incomplete projects that cause a client to lose money.

Professional liability can help pay for:

  • Professional negligence (actual or alleged)
  • Legal defense costs
  • Legal judgments

Learn more about what professional liability insurance covers.

How much does Professional Liability insurance cost?

The cost of professional liability insurance depends on the type of work you do and many other factors. With Next, you can rest assured you’re getting customized insurance at an affordable price — all from an insurance company that’s 100% dedicated to you and your small business.  

How do I get Professional Liability insurance?

With Next Insurance, you can purchase professional liability coverage online and get your certificate of insurance in 10 minutes, or less. 

Start an instant quote to see options for your business. 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 for professional liability 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.

More frequently asked questions

Learn about professional liability insurance with more frequently asked questions about our coverage. If you don’t find the answers you’re looking for, our licensed insurance advisors are standing by to help.

Read more about professional liability insurance FAQs.

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Let’s find the coverage you need for your business.

Business insurance is divided into different policies. We offer 7 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.

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Professional Liability or Error and Omissions Insurance Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

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Workers' Compensation Insurance Workers' Compensation

Cover medical bills and lost wages if your employees have an accident at work.

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Commercial Auto Insurance Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

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Tools & Equipment Insurance Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

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Commercial Property Insurance Commercial Property

Keep your building, inventory and equipment protected from fire, flood or water damage.

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Business Owner’s Policy Insurance Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

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