Professional Liability Insurance in Texas

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 Texas business owners and their employees if a client accuses them of making a business mistake or acting negligently.

Texas professional liability insurance could provide coverage for:

  • Professional mistakes that affect another person or business financially
  • Accusations of inaction, wrongdoing or other types of professional negligence
  • Misrepresentation of services

With professional liability insurance, Texas business owners may be able to submit a claim to help cover related costs, whether an error was actually made or a client claims it was. For example:

  • A Dallas accountant makes an error when filing paperwork, which results in a client missing out on significant tax advantages. Professional liability insurance can help cover costs related to the mistake.
  • A Houston claims adjuster is accused of making a mistake while adjusting a claim for an insurance company. Professional liability insurance could help cover costs to defend against the accusation.

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

Errors and omissions insurance, or E&O, is a term that’s often used interchangeably with professional liability insurance.

Professional liability and E&O typically provide the same coverage, but the preferred term varies by industry. E&O is primarily used in real estate, property management and insurance. A specific contractor’s E&O option is available for construction professionals.

Most other industries, including law, accounting, architecture and engineering, refer to this coverage as professional liability insurance.

Is Professional Liability insurance required in Texas?

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

For example, Texas state or local government contract workers may be required to have professional liability insurance coverage. Texas healthcare employers sometimes require providers to have a type of professional liability coverage called malpractice insurance.

Even when it’s not required, it can be beneficial to have professional liability or errors and omissions insurance. Texas business owners often get this coverage for the following reasons:

Financial protection

Small businesses with professional liability or errors and omissions insurance in Texas may be better protected financially if they make a professional mistake or a client accuses them of negligence.

Work contracts

Some clients may ask for a certificate of insurance before they’ll sign a contract to work with you, especially for high-value projects. Without professional liability or E&O insurance, Texas business owners may lose out on potential jobs.

Licenses and permits

Professional liability coverage may be necessary for certain business licenses and certifications, or the city where you work may require it.

For instance, city contractors and subcontractors in Austin must have professional liability insurance with minimum coverage of $500,000 per claim.1

What types of businesses might need Professional Liability in Texas?

Texas errors and omissions insurance and professional liability insurance are common coverages for professional services, such as real estate professionals, lawyers, accountants and consultants.

However, businesses across many industries can benefit from this type of Texas business insurance.

This coverage could help your business if you make a mistake that costs someone money or face accusations of negligence or wrongdoing. Professional liability insurance can help resolve these issues quickly, which may allow you to avoid damage to your reputation and customer confrontations.

For example, a client could accuse a San Antonio architect of making a mistake in their blueprints, causing project costs and timelines to double. Professional liability insurance can help cover related expenses if the architect is sued for financial losses.

Similarly, if a real estate agent in El Paso neglects to list unsafe levels of radon detected on the property in a seller disclosure, E&O insurance can help cover related costs.

How much is Professional Liability insurance in Texas?

Professional liability insurance costs are determined according to a number of factors, including:

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

NEXT makes it easy to get affordable Texas E&O insurance or professional liability insurance online in about 10 minutes. In fact, 52% of our U.S. customers pay $45 or less in monthly premiums for this type of business insurance.**

Learn more about professional liability insurance costs.

How NEXT Insurance helps Texas businesses

NEXT provides Texas professional liability insurance policies designed for 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 Texas business insurance

Professional liability insurance is only one type of Texas business insurance you may need. Additional coverage can help protect your business from other types of risks you face every day.
Most Texas businesses also consider these options:
General Liability
General Liability insurance

Texas general liability insurance can help protect your business if certain types of accidents occur, such as property damage or an injury to someone other than you or an employee.

Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance can help provide important coverage if an employee gets hurt on the job. Texas does not require businesses to carry workers’ comp insurance, but those without coverage could be held responsible for medical expenses and lost wages.

Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help cover 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 Texas requires all vehicles to have minimum auto insurance coverage of $30,000 per person, $60,000 per accident and $25,000 for property damage.2

Commercial Property
Commercial Property insurance

Commercial property insurance can help protect physical assets, like business equipment, inventory, furniture and commercial structures. This insurance can help pay for repairs or replacements if your business property is damaged due to a covered event, such as a fire or water damage from a 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.