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Professional Liability Insurance in California

You can save up to 25% in discounts.*

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.

Inaccuracy

Inaccuracy

Someone accuses you of misrepresenting 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.

What is Professional Liability insurance coverage?

Professional liability insurance can help protect California business owners and their employees if they are held responsible for business mistakes or face accusations of negligence.

This insurance can help cover:

  • Professional mistakes that causes financial harm to another person or business
  • Accusations of professional negligence including inaction or wrongdoing
  • Misrepresentation of your services

Professional liability insurance can help cover related costs in various situations, whether you actually made an error or a client claims that you did. For example:

  • A client claims an architect in Los Angeles made an error in their designs that led to the collapse of a stairwell, and they sue them for causing injuries. Professional liability insurance can help the architect with legal defense costs if they need to defend their business.
  • A San Francisco insurance agent forgets to remind a client to renew their auto insurance policy. After the policy expires, the client gets into a crash which causes significant damage. Professional liability insurance can help cover the costs resulting from the mistake.

What is the difference between Professional Liability and E&O insurance?

Professional liability insurance is sometimes known as errors and omissions insurance, or E&O.

The terms are often used interchangeably and usually provide the same coverage; it just depends on the industry. E&O is used primarily for real estate agents, property managers and insurance agents. There’s also a specific contractor’s E&O option for construction professionals.

Most other industries refer to this insurance as professional liability, including lawyers, accountants, architects and engineers.

Is Professional Liability insurance required in California?

Professional liability insurance is not required for most businesses in California. However, coverage may be required to comply with certain industry standards.

For instance, if you work on California state or local government contracts, you may be required to have professional liability coverage. Or, if you are a healthcare provider, your employer may require you to have malpractice insurance, a type of professional liability coverage.

Even when it’s not required, having professional liability insurance can be beneficial. California business owners often get this coverage for the following reasons:

Financial protection

California small businesses with professional liability coverage may be better protected financially if they make a professional mistake or are accused of negligence.

Work contracts

Clients may require a certificate of insurance before signing a contract to work with you, especially on high-cost projects. Without professional liability or E&O insurance, you may lose out on potential jobs.

Licenses and permits

Professional liability insurance could be required in the city where you work or for certain business licenses and certifications.

For example, mental health providers in Fresno County must have professional liability insurance with minimum coverage of $1 million per occurrence with a $3 million annual aggregate.1

What types of businesses might need Professional Liability in California?

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

However, many industries can benefit from this type of California business insurance.

Many businesses run the risk of making a mistake that costs someone money or could potentially face accusations of negligence or wrongdoing. Professional liability insurance can help resolve these issues quickly so you can avoid customer confrontations and protect your reputation.

For example, if an accountant in San Diego is accused of making a mistake that caused a client to lose out on significant tax advantages, professional liability insurance could help cover related expenses to defend themselves.

Similarly, if a property manager accuses a San Jose painter of painting a building with the wrong color, contractor’s E&O insurance can help cover the costs to redo the job or defend against the accusation.

How much is Professional Liability insurance in California?

The cost of professional liability insurance can vary depending on a variety of factors, including:

  • The type of work you do
  • The number of employees you have
  • The locations where you do business
  • Your work experience
  • Your insurance claims history
  • How high you set your limits

NEXT makes it easy to get affordable California errors and omissions insurance or professional liability insurance online in about 10 minutes. Monthly premiums for this type of business insurance policy cost $45 or less for 52% of our U.S. customers.**

Learn more about professional liability insurance costs.

How NEXT Insurance helps California businesses

NEXT provides professional liability insurance policies for California small business owners and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

Other types of California business insurance

E&O insurance or professional liability insurance is just one type of business insurance California small business owners may need. Additional coverage can help protect your business from other risks.
Most California businesses also consider these options:
General Liability
General Liability insurance

California general liability insurance can help protect your business from common mistakes or accidents in your industry. This insurance can help pay for damages if someone blames your company for causing injury or destroying property.



Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance can help provide important coverage for medical expenses and lost wages if an employee gets hurt on the job. All employers in California are required to carry workers’ comp insurance.2



Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help cover related costs like medical expenses and property damage if you or an employee are involved in an accident while driving a work vehicle.

The state of California requires all vehicles to have minimum auto insurance coverage of $15,000 per person, $30,000 per accident and $5,000 for property damage.3



Commercial Property
Commercial Property insurance

California commercial property insurance can help protect business equipment, inventory, furniture and commercial structures used by business owners. This insurance can help pay for repairs or replacements if your business property is damaged due to a covered event, such as a burst water pipe or fire.



Customer reviews

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.

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.

Take a look at some helpful blog posts
Errors and Omissions vs. Professional Liability vs. Malpractice: What's the Difference Anyway?
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Errors and Omissions vs. Professional Liability vs. Malpractice: What's the Difference Anyway?

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5 Ways Insurance Protects You from Unfairly Unhappy Clients

Who Needs Professional Liability Insurance?
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Who Needs Professional Liability Insurance?

* 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.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased professional liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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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.