Professional Liability Insurance in Michigan

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.



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.

What is Professional Liability insurance coverage?

With professional liability insurance, Michigan business owners can help protect their company if they or one of their employees makes a professional mistake or faces an accusation of negligence.

This type of business insurance can help cover:

  • Business mistakes that result in financial harm to another business or client
  • Accusations of inaction, wrongdoing and other kinds of professional negligence
  • Misrepresentation of your professional services.

Professional liability insurance may help cover costs related to various situations, whether or not you actually made the error your client claims that you did. For example:

  • A Detroit real estate agent shows a furnished property to prospective buyers, and one of them accidentally damages a wall. Professional liability insurance in Detroit can help the agent pay for costs related to the mistake.
  • A client sues an accountant in Grand Rapids for making a mistake in their paperwork that led to them losing out on significant tax advantages and paying more than they had to. Professional liability insurance can help the accountant cover legal defense costs to fight the lawsuit.

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

Professional liability insurance is also called errors and omissions insurance, or E&O.

These terms may be used interchangeably and typically refer to the same coverage. The main difference is that the term professional liability is preferred in some industries, while in others, this coverage is called errors and omissions insurance. Michigan property managers, real estate agents and insurance agents primarily use E&O, and there is also a contractor’s E&O option for construction professionals.

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

Is Professional Liability insurance required in Michigan?

Most businesses in the state are not required by law to carry Michigan professional liability insurance. However, professionals may need this coverage to comply with standards in certain industries.

For example, if you’re a health care provider, your employer might require you to carry malpractice insurance, a type of professional liability insurance. Or, if you would like to work on Michigan state or local government projects, you may need professional liability insurance to secure a contract.

Professional liability insurance coverage can be valuable for Michigan businesses, even when it’s not required. Business owners in the state often choose this coverage for the following reasons:

Financial protection

With professional liability insurance, Michigan small businesses may be better financially protected if they’re accused of professional negligence or make a business mistake.

Licenses and permits

Depending on your industry and where you work, professional liability insurance may be required to obtain or renew certain business licenses or certifications.

Work contracts

A certificate of insurance may be required before a client agrees to sign a contract to work with you. You may even risk losing out on potentially lucrative jobs without professional liability insurance.

For example, architects working on new construction or renovation projects for the Michigan State Housing Development Authority (MSHDA) must have E&O insurance coverage equal to 10% of the construction contract amount or $1,000,000, whichever is greater.1

What types of businesses might need Professional Liability in Michigan?

Professionals such as accountants, real estate agents and business consultants rely on professional liability as common coverage for professional services.

Businesses operating in these or many other industries can benefit from this type of Michigan business insurance. 

Most businesses offering professional services risk making a mistake that could cost someone money or facing accusations of negligence or wrongdoing. Having professional liability insurance in Michigan may help resolve these issues quickly so you can protect your company’s reputation and avoid client confrontations.

For instance, say a financial advisor’s client in Ann Arbor sues them for using copyrighted material in their advertisements. Professional liability insurance could help cover these defense costs.

Or suppose a client discovers that a Lansing architect made critical measuring mistakes in their blueprints, causing project costs and timelines to double, and they sue for financial losses. In that case, professional liability insurance could help cover costs for redoing the job and legal fees.

How much is Professional Liability insurance in Michigan?

Several factors can affect the cost of Michigan professional liability insurance, including:

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

With NEXT Insurance, it’s easy to get affordable Michigan errors and omissions or professional liability insurance online in approximately 10 minutes. 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 Michigan businesses

NEXT provides professional liability insurance policies for Michigan 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 Michigan business insurance

Professional liability is just one kind of business insurance Michigan small business owners might need. Additional coverage options may be able to help protect your business from other types of everyday risks.
Many business owners in Michigan also consider these options:
General Liability
General Liability insurance

Michigan general liability insurance may help protect your business from accidents and mistakes common in your industry. General liability coverage can help cover damages if your company is blamed for causing third-party injuries or property damage.

Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance is an important type of coverage that can help cover lost wages and medical expenses if an employee gets hurt on the job. In Michigan, all companies with at least one full-time employee or three or more total employees must have workers’ comp insurance.2

Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help cover medical expenses, property damage and other related expenses if you or an employee gets into an accident while driving a work vehicle.

In Michigan, all vehicles are required to have minimum auto insurance coverage of $20,000 per person, $40,000 per accident and $10,000 for property damage.3

Commercial Property
Commercial Property insurance

Commercial property insurance can help businesses protect physical assets such as buildings, furniture and inventory. This coverage can help pay for repairs or replacements after your property is damaged by a covered event, such as an electrical fire or burst pipe.

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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.
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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.
** 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.

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.