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Professional Liability Insurance in Maryland

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 is a type of business insurance that could help cover Maryland business owners if they are held responsible for a professional error or are accused of negligence.

This insurance can help cover:

  • Business mistakes that cause financial harm to a client or customer
  • Accusations of inaction, wrongdoing and other kinds of professional negligence
  • Misrepresentation of your services

Professional liability insurance could help cover costs in various situations, whether or not you actually made the professional mistake you are accused of making. For instance:

  • A Bethesda insurance agent has to pay a lawyer to defend their case in a disciplinary hearing by a professional review board. Professional liability insurance for insurance agents in Baltimore can help cover the legal defense costs needed to defend their business.
  • A client discovers that an architect in Baltimore made critical measurement mistakes in their blueprints, causing project costs and timelines to double. They sue the architect for financial losses. Professional liability insurance may help cover costs related to the mistake.

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

Another common name for professional liability coverage is E&O or errors and omissions insurance. Maryland business owners may use the terms interchangeably, but typically it depends on their industry.

While professional liability and E&O insurance usually provide the same coverage, E&O is mainly used by insurance agents, real estate agents and property managers. There is also a special contractor’s E&O option for construction professionals.

In most other professions, including finance, engineering and law, this insurance is called professional liability. For example, Baltimore-based legal professionals would search for professional liability insurance for lawyers in Baltimore rather than E&O coverage.

Is Professional Liability insurance required in Maryland?

Professional liability insurance is not legally required for most businesses in Maryland. However, business owners in the state may still need this coverage to comply with standards in their industry.

For instance, companies working on state or local government contracts may need professional liability insurance. Maryland healthcare providers may require their employer to have malpractice insurance, a type of professional liability coverage.

Many business owners in Maryland still choose to have professional liability insurance, even when it’s not required, for the following reasons:

Financial protection

Small businesses in Maryland with professional liability insurance may be better financially protected if they make a professional error or are accused of negligence or wrongdoing.

Licenses and permits

The city or county where you work may require proof of professional liability or E&O coverage for certain business licenses, permits and certifications.

Work contracts

Depending on your industry, clients may request a certificate of insurance before agreeing to work with you. You may risk losing out on high-value projects if you don’t have professional liability insurance.

For instance, the City of Baltimore requires emergency professional services consultants to have professional liability coverage of no less than $1 million to secure a government work contract.1

What types of businesses might need Professional Liability in Maryland?

Some business owners consider professional liability insurance standard coverage, including many consultants, advisors, architects and engineers.

However, businesses operating in various industries can benefit from this type of Maryland business insurance.

Many Maryland small businesses risk of making a mistake that causes financial harm or being accused of professional negligence. Professional liability insurance can help business owners resolve these issues quickly to avoid client confrontations and protect their reputations.

For example, suppose a client sues a Silver Spring financial advisor for making a mistake that led them to lose out on significant tax advantages and pay more than they had to. In that case, professional liability insurance could help fix the error or defend against the accusation.

Or, say a real estate agent in Germantown neglects to list unsafe levels of radon detected on a property in a seller disclosure. Errors and omissions insurance can help cover costs related to correcting mistakes or defending their business.

How much is Professional Liability insurance in Maryland?

The cost for professional liability coverage can vary based on a number of factors, including:

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

NEXT makes getting affordable Maryland professional liability insurance fast and easy. You can apply online in about 10 minutes, and our monthly premiums for this type of business insurance cost $45 or less for 52% of our U.S. customers.**

Learn more about professional liability insurance costs.

How NEXT Insurance helps Maryland businesses

NEXT provides professional liability insurance policies for Maryland 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 Maryland business insurance

Professional liability or E&O coverage is just one kind of business insurance Maryland small business owners should consider. Additional coverage options can help protect your businesses from other everyday risks.
Most Maryland businesses also consider these options:
General Liability
General Liability insurance

General liability insurance can help provide financial protection for common accidents. This coverage can help pay for related costs if someone blames your business for causing a third-party injury or property damage.



Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance in Maryland could help cover medical expenses and lost wages if an employee gets injured on the job. Most Maryland employers are required by law to carry workers’ comp insurance.



Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help cover related costs such as medical bills and property damage if you or one of your employees is involved in an accident in a company-owned vehicle.

Maryland requires that all vehicles have minimum auto insurance coverage of $30,000 per person, $60,000 per accident and $15,000 for property damage.2



Commercial Property
Commercial Property insurance

Commercial property insurance can help protect physical business assets such as commercial structures inventory, furniture and business equipment. This insurance can help pay for repairs or replacements if your business property is damaged by fire, wind, vandalism or another covered event.



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.

What we cover
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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.