Professional Liability Insurance in North Carolina

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?

Professional liability insurance can help protect business owners in North Carolina if they or one of their employees makes a business mistake or faces an accusation of professional negligence.

North Carolina professional liability insurance can help cover:

  • Mistakes related to your profession that cause financial harm to a client or customer
  • Allegations of professional negligence, such as wrongdoing or inaction
  • Misrepresentation of services

Professional liability insurance can help pay for related costs in many types of situations, whether you made an error or a client claims that you did. For example:

  • A Charlotte insurance agent forgets to remind a client to renew an auto insurance policy. A day after the policy expires, the client crashes into another car, which causes significant damage. Professional liability insurance in Charlotte could help the insurance agent cover related costs.
  • A client in Ralaigh sues an interior designer for using copyrighted material in their advertisements. Professional liability insurance in Raleigh can help the designer with legal costs for defending their business.

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

Another common name for professional liability insurance is E&O, or errors and omissions insurance. North Carolina businesses may use these terms interchangeably depending on their industry.

Professional liability and E&O insurance usually provide the same coverage. However, the term E&O is favored by property managers, real estate agents and insurance agents. There is also a distinct contractor’s E&O for professionals in the construction industry.

Professional liability is the favored name for this insurance in most other sectors, including lawyers, architects and financial planners.

Is Professional Liability insurance required in North Carolina?

Most businesses in North Carolina are not required to have professional liability coverage. However, you may need this insurance to meet certain industry standards.

For example, if you intend to work on government contracts, you may be required to have a professional liability policy. Similarly, healthcare workers often need malpractice insurance, a type of professional liability coverage.

Even when it’s not required, it can be beneficial to have professional liability or E&O insurance. North Carolina business owners often choose this coverage for important protections such as:

Financial protection

Unexpected costs can be challenging for small businesses. With professional liability coverage, business owners may be better financially protected if they make a professional mistake or are accused of negligence.

Licenses and permits

Depending on the type of work you do and the city where you work, you may need professional liability coverage to obtain or renew some business licenses and certifications.

Work contracts

In some industries, it’s common for clients to require a certificate of insurance before agreeing to work with you, especially on high-cost projects. Without professional liability insurance, you may not be able to secure these contracts.

For example, professional liability insurance is required by Alliance Health for all providers in an amount not less than $1 million per occurrence and $3 million annual aggregate. Alliance is the publicly funded behavioral healthcare network for Cumberland, Durham, Johnston, Mecklenburg, Orange and Wake counties.1

What types of businesses might need Professional Liability in North Carolina?

Most businesses offering professional services, such as insurance agents, business consultants and accountants, choose professional liability insurance as common coverage.

However, businesses across countless industries can benefit from this type of North Carolina business insurance.

Since most businesses risk making a mistake that could cause financial harm to someone else or could potentially face accusations of wrongdoing or negligence, there can be benefits to having professional liability insurance. North Carolina businesses with this insurance coverage may be able to get help resolving these issues quickly to help protect their business and reputation.

For instance, if a property owner in Durham claims that a real estate agent made repeated mistakes on the paperwork for transitions between tenants that cost him $50,000, it can help to have real estate E&O insurance. North Carolina agents could get help to cover related expenses needed to defend themselves with this coverage.

Or, say, an architect in Greensboro has a client that alleges that a mistake the architect made in their designs led to the collapse of a stairwell and sues them for causing injuries. Professional liability insurance can help the architect cover related costs or defend against accusations.

How much is Professional Liability insurance in North Carolina?

Costs for North Carolina professional liability insurance coverage vary based on several factors, including:

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

AT NEXT, it’s easy to get affordable North Carolina professional liability or E&O insurance online in around 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 North Carolina businesses

NEXT provides professional liability insurance policies for North Carolina small businesses 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 North Carolina business insurance

Professional liability insurance is only one type of North Carolina business insurance that can benefit small business owners. With additional coverage options, you can help protect your business from other everyday risks
Most businesses in North Carolina also consider these options:
General Liability
General Liability insurance

North Carolina general liability insurance can help to protect your business in a wide range of incidents or accidents. This insurance coverage can help pay for related costs if your company is blamed for causing a third-party injury or property damage.

Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance can help provide essential coverage for lost wages and medical expenses if an employee has a workplace injury. Nearly all businesses in North Carolina with at least three employees are required to carry workers’ comp insurance.2

Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help provide financial assistance to cover property damage or medical expenses if you or an employee gets in an accident while driving a company vehicle.

North Carolina requires that all vehicles carry minimum auto insurance coverage of $30,000 per person, $60,000 per accident and $25,000 for property damage.3

Commercial Property
Commercial Property insurance

Commercial property insurance can help protect physical business assets such as inventory, furniture, commercial structures and equipment. With this insurance, Colorado business owners may be able to submit a claim after a covered event to pay for repairs or replacements.

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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.