A client or customer accuses you of making a professional mistake that costs them money.
Someone claims your inaction or wrongdoing caused a financial loss or personal harm.
Someone accuses you of misrepresenting information with your services.
You need to hire a lawyer to defend your business after you are accused of making a professional mistake.
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:
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:
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.
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:
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.
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.
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
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.
Professional liability insurance costs are determined according to a number of factors, including:
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.
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.
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 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 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 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.
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.