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Professional Liability Insurance in Washington

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 can help protect Washington business owners if they are held responsible for professional mistakes or face accusations of negligence or wrongdoing.

Professional liability insurance can help cover:

  • Business mistakes that financially harm another person or company
  • Accusations of professional wrongdoing or inaction
  • Misrepresentation of services

Whether you made a professional error or a client claims that you did, you could get help covering related costs with professional liability insurance. Washington state businesses may be able to submit a claim in various situations, such as:

  • A client sues a Seattle accountant for making a mistake in their paperwork that led to the client losing out on significant tax advantages and paying more than they had to. The accountant’s professional liability insurance can help cover costs that result from the error.
  • An insurance agent in Spokane does nothing wrong, but a former client sues them for misrepresenting the coverage on a policy after their claim is denied. The costs to establish a legal defense to get the case dismissed are significant. However, professional liability insurance could help with legal costs if the insurance agent needs to defend their business.

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

Another common name for professional liability insurance is errors and omissions or E&O insurance. Washington state businesses may use these terms interchangeably as they usually provide the same coverage.

Errors and omissions insurance is the term used mainly by insurance agents and real estate professionals. There is also a separate contractor’s E&O option for construction professionals.

In most other professions, this insurance is called professional liability. For example, lawyers looking for professional liability insurance for law firms in Washington would probably not call the insurance E&O.

Other industries that call this type of insurance professional liability include architects, engineers and accountants.

Is Professional Liability insurance required in Washington state?

Most Washington state businesses are not required to carry professional liability insurance. Nevertheless, entrepreneurs and professionals may need this business insurance to comply with industry standards.

For example, healthcare providers often need malpractice insurance, a type of professional liability coverage, to work in medical facilities. Also, if you work on state or local government contracts in Washington, you may need professional liability or E&O insurance.

Even when it’s not required, professional liability insurance may offer the following benefits for business owners:

Financial protection

Small businesses in Washington with professional liability insurance may be better protected from related costs if they make a business mistake or are accused of negligence or wrongdoing.

Licenses and permits

The city or county where you work may require professional liability insurance to obtain or renew certain business licenses, permits or certifications.

Work contracts

Depending on your industry, it may be common for clients to require a certificate of insurance before agreeing to work with you. Without E&O or professional liability insurance, you may risk losing out on potentially lucrative jobs.

For example, professional liability insurance for attorneys in Washington is not mandated. But there is a malpractice insurance disclosure requirement where lawyers must inform clients if they do not meet the minimum levels of this professional liability coverage. Lawyers in Washington need malpractice insurance for $100,000 per occurrence and $300,000 in the aggregate or must provide written notice that they do not meet this requirement.1

What types of businesses might need Professional Liability in Washington?

Professional liability insurance is considered common coverage for professional services in many occupations, such as accounting, consulting, construction and healthcare.

However, professionals in many industries can benefit from this Washington state business insurance.

Many business owners and employees risk making a mistake that could cause financial harm or facing accusations of negligence. With professional liability coverage, you may be able to submit a claim to help resolve these issues quickly and protect your company’s reputation.

For instance, if a client sues a Tacoma interior designer for using copyrighted material in their advertisements, professional liability coverage could help cover costs related to defending themselves.

Or a prospective customer might file a discrimination lawsuit accusing a Kent real estate agent of steering them away from one of their listings, claiming that the agent violated the Fair Housing Act. Professional liability insurance could help cover the costs for the agent to defend themselves.

How much is Professional Liability insurance in Washington?

The price of Washington professional liability insurance can vary based on several factors, including:

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

NEXT makes getting affordable Washington professional liability or E&O insurance 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 Washington businesses

NEXT provides professional liability insurance policies for Washington 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 Washington business insurance

Errors and omissions insurance is just one kind of business insurance Washington professionals may need. You can help protect your business from other everyday risks with additional coverage options.
Many business owners in Washington also consider these types of insurance:
General Liability
General Liability insurance

General liability insurance can help cover costs related to common mistakes or accidents. If someone blames your business for causing a third-party injury or property damage, this type of insurance may be able to help pay for damages.



Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance can help protect your business by providing coverage for lost wages and medical expenses if an employee gets hurt on the job. Nearly every employer in Washington is required to carry workers’ comp insurance.2



Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help pay for costs such as medical expenses and property damage if you or an employee is involved in an accident while driving a company vehicle.

The State of Washington requires that all vehicles have minimum auto insurance coverage of $25,000 per person, $50,000 per accident and $10,000 for property damage.3



Commercial Property
Commercial Property insurance

Commercial property insurance can help protect important business equipment, inventory and commercial structures used by Washinton state business owners. If your business property is damaged in a covered event, such as a fire or burst pipe, this insurance can help pay for repairs or replacements.



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.

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.

Take a look at some helpful blog posts
Errors and Omissions vs. Professional Liability vs. Malpractice: What's the Difference Anyway?
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Errors and Omissions vs. Professional Liability vs. Malpractice: What's the Difference Anyway?

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5 Ways Insurance Protects You from Unfairly Unhappy Clients

Who Needs Professional Liability Insurance?
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Who Needs Professional Liability Insurance?

* 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.