Best professional liability insurance for small businesses

Factors such as the type of work you do, your location, and your budget will determine the best carrier when buying professional liability insurance, also called errors and omissions insurance (E&O).

Insureon works with 40+ carriers to find the best insurance coverage for your needs. We've helped over 400,000 small businesses get protected with more than 1.5 million policies.

When you compare quotes with our application, we do the work for you by retrieving quotes from the insurers that best match your business needs. The most important factors are:

• Best-rated companies, in terms of financial strength and ratings
• Best carriers for your industry
• Best carriers for your business's location

Some providers specialize in professional liability insurance for certain professions, and others operate only in limited areas. All of our insurance partners are rated excellent or superior by AM Best [PDF].

When buying professional liability insurance with Insureon, you'll get quotes from trusted providers that specialize in this policy.

Based on financial strength and overall rating, our top carriers for professional liability include:

The Hartford: Rated A+ by AM Best. Located in Hartford, CT. Specializes in property and casualty insurance, group benefits, and mutual funds.

Philadelphia Insurance Companies (PHLY): Rated A++ by AM Best. Located in Bala Cynwyd, PA. Specializes in property and casualty insurance, management insurance, and professional liability insurance.

Hiscox: Rated A. Located in Chicago, IL. Specializes in general liability, professional liability, business owner’s policy (BOP), and cyber insurance.

Travelers: Rated A++. Located in Hartford, CT. Specializes in commercial property and casualty insurance, personal insurance.

CM&F Group: Rated A++. Located in New York, NY. Specializes in medical malpractice insurance.

Professional liability insurance covers risks that are specific to your work, such as accusations of professional negligence or failure to meet a standard of care. Because of that, it's important to choose a carrier that specializes in coverage for your profession.

The right carrier can help make sure you're covered for the relevant risks. In fact, some carriers only cover certain professions.

Here are the recommended providers of professional liability insurance for our top industries.

In some cases, your state can be a relevant factor when buying professional liability insurance. Many insurance providers sell policies nationwide, but some cover only a limited area that might not include your business's location.

These are the carriers that sell the most professional liability policies for Insureon's customers in our top states:

Going without professional liability coverage could result in fines, penalties, or the loss of your license in a state where it's required.

Most professionals aren't required by law to carry professional liability insurance. However, you might need it to fulfill the terms of a contract or to work at a specific facility. Everything from real estate agencies to hospitals and other healthcare facilities can require this coverage for their workers.

Perhaps most important, a professional liability policy can make the difference between withstanding a lawsuit and going about your work, versus having to potentially shutter your business due to legal costs.

Professional liability insurance covers lawsuits related to:

• Breach of contract
• Missed deadlines
• Mistakes and oversights
• Misrepresentation

When you carry this policy, your clients know you're protected against legal costs—which means they won't become their problem. They might be more likely to choose your company over a competitor who is uninsured.

Professional liability insurance provides crucial coverage in the event of a lawsuit from a dissatisfied customer, but it's not the only type of insurance you need. Small business owners often look to the following insurance policies for additional protection:

General liability insurance: This policy helps pay for accidents that damage a customer's property or cause a bodily injury. It also covers defamation and copyright lawsuits.

Business owner's policy: A business owner's policy combines general liability insurance with commercial property insurance in a cost-saving package. It provides coverage in the event of a customer accident or business property damage.

Workers’ compensation insurance: Workers' comp covers medical expenses when an employee is injured on the job. Most states require this coverage for businesses that have employees.

Commercial auto insurance: Businesses that own a vehicle are typically required to carry this coverage. It helps pay for legal costs and medical bills if your business vehicle is involved in an accident.

Cyber insurance: This policy covers expenses related to data breaches and cyberattacks, such as the cost of notifying affected customers. It's also called data breach insurance.

Commercial umbrella insurance: When your underlying general liability, commercial auto, or employer's liability insurance policy reaches its limit, umbrella insurance kicks in to provide additional coverage.

It's easy to get a professional liability policy with Insureon. Fill out our online application to receive quotes from trusted providers. Our expert insurance agents can help you choose appropriate coverage limits, add endorsements, and make sure your policy matches your business needs.

Most small business owners can get same-day coverage and easily download a certificate of insurance as soon as they purchase their policy.