Professional Liability insurance
Coverage for business mistakes and accusations of professional negligence
Choose your primary industry to get started:
Insurance for professional liability can help you defend yourself from occupational mistakes
Business errors
A client or customer accuses you of making a professional mistake that costs them money.
Claims of professional negligence
Someone claims professional inaction or wrongdoing caused a financial loss or harm.
Misrepresentation
Someone accuses you of providing inaccurate information with your services.
Legal defense costs
You need to hire a lawyer to defend your business after you’re accused of a professional mistake.
What is Professional Liability insurance coverage?
Professional liability insurance is a type of business insurance that can help protect your business if you’re accused of making a professional mistake or an act of professional negligence.
A client or customer can file a lawsuit against you if they think your professional error or inaction caused them financial loss. Coverage can help you pay for expenses if you’re at fault for a mistake or professional negligence. It can also help pay for defense costs if you’re falsely accused.
Small business professional liability insurance can help you resolve these issues, avoid customer confrontations and protect your reputation if a customer claims you made a mistake — whether you did or not.
In some professions, professional liability coverage is called errors & omissions insurance (E&O insurance) or professional indemnity insurance.
How much does Professional Liability insurance cost?
Professional liability insurance policies can cost as little as $19/month† for some low-risk businesses.
Several factors influence the price you’ll pay for insurance, including:
- Your industry
- Your business operations
- The size of your business
- Where you do business
- Your business needs and how much coverage you choose
- Policy limits
Who needs business Professional Liability insurance?
Business consultants
If your professional advice leads to a loss for your clients and you don’t carry insurance, your business could be responsible for the full cost of legal defense and settlements.**
Accountants and financial professionals
If you’re a bookkeeper, tax professional or financial advisor and your client accuses you of an error that led to an overpayment, liability coverage could help cover some of your legal defense costs.
Engineers
If a client claims that the materials you recommended weren’t safe for their project, professional liability coverage for engineers could help you defend yourself.
Architects
A client alleges that your design mistake led to the collapse of a stairwell and sues you for causing injuries. Your insurance could help cover the cost of damages if your business is at fault.
Professional Liability insurance FAQ (frequently asked questions)
Is Professional Liability insurance legally required?
Professional liability insurance for small businesses is typically not required for most professions. However, it can be required for lawyers in some states. Be sure to check the requirements in your area.
However, if you work on high-cost projects, your clients may require you to carry insurance so you have financial protection in case of a lawsuit. Though this insurance coverage may not be mandatory, it can signal your professionalism and help your business stand out amongst competitors.
How do I make a Professional Liability insurance claim?
You can file a claim anytime online or in the NEXT app.
You’ll be asked to share the details of what happened and to provide relevant photos and documentation. We strive to make claims decisions as quickly as possible so that you can get back to work.
When will I get my policy and proof of insurance?
It takes about 10 minutes to get a quote, buy coverage and get access to policy documents and your certificate of insurance (COI).
You can access your documents and COI 24/7 online or in the NEXT app for iPhone or Android.
Can I add Professional Liability if I already have General Liability insurance or other coverage?
Yes. NEXT can give you up to a 10% discount when you add a professional liability policy to your existing coverage.
You can add professional liability insurance directly through your customer account.
What’s the difference between Professional Liability and E&O insurance?
Although they go by different names, professional liability and errors and omissions insurance (E&O insurance) can both help protect you if you’re accused of making a professional error that leads to a financial loss for a client.
The name can be different depending on your industry.
- Professional liability coverage is usually the choice for accountants, consultants, engineers and architects.
- Errors & omissions insurance is the professional standard for real estate and insurance agent professionals.
Do you offer prior acts coverage?
It depends on your industry and business operations.
In some cases, we may provide prior acts coverage for businesses that have maintained continuous professional liability coverage at similar or higher limits since the requested retroactive date.
Can I add an additional insured to my Professional Liability policy?
Yes, NEXT customers can easily add an additional insured and share their certificate of insurance through their customer account.
Get customized insurance wherever you do business
Learn more about professional liability insurance options in the state where you work.
NEXT Insurance reviews
Easy to process
Where other websites did not deliver on a timely manner, this was relatively easy to get a quote and finish the process in a few minutes after accepting it. It was also easy to mod...
Riccardo H.
Liability insurance
Very affordable
Jerry R.
Easy to use
Great! Set everything up and got the insurance needed for my business without hassle and it was very easy and quick to navigate
Myles C.
Excellent
Good service, great prices for the coverages.
Chad S.
Very easy
I was very impressed by how thorough and simple the process was.
Yiseet C.
The Easiest Insurance Process Ever
Who knew that you could create a customizable insurance policy, so quickly and so easily? Don't put off getting your professional insurance policy. It will take you longer to run a...
Raven S.
Easy to process
Where other websites did not deliver on a timely manner, this was relatively easy to get a quote and finish the process in a few minutes after accepting it. It was also easy to mod...
Riccardo H.
Liability insurance
Very affordable
Jerry R.
Easy to use
Great! Set everything up and got the insurance needed for my business without hassle and it was very easy and quick to navigate
Myles C.
Excellent
Good service, great prices for the coverages.
Chad S.
