Professional liability insurance provides protection for claims from failing to meet agreed standards of service, negligence, or malpractice that can result in financial losses. We’ve evaluated the best professional liability insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Depending on your industry, professional liability insurance can also be known as malpractice insurance or errors and omissions insurance. In the event of a lawsuit, professional liability insurance will help pay for legal defense costs, settlement costs, copyright infringement, and personal injury claims.
Who needs professional liability insurance?
In some states, certain professionals such as lawyers and doctors are required by law to carry professional liability insurance. Businesses that can be covered for professional liability insurance, include (but are not limited to):
Coaches
Accountants
Medical professionals
Dentists
Lawyers
Business and IT consultants
Photographers
Engineering service providers
Educational service providers
Beauticians
Financial advisors
Therapists
What does professional liability insurance cover and exclude?
Professional liability insurance provides coverage against claims made by customers seeking to recover costs and financial losses. Typically, policies include:
Negligence and mistakes: Errors can happen which can be harmful to the client or lead to financial damages and losses.
Breaches: The inability to fulfill a contractual obligation due to unexpected circumstances.
Legal costs: Costs of an attorney to provide legal defense and settlement costs.
Copyright Infringement: Issues arising out of copyright law.
Services performed before the policy: Protection for previous work up to a given timeframe.
Employees: Coverage will be provided for work performed by employees.
Howeve,r professional liability insurance does have exclusions. These include criminal activity, violation of laws and regulations, claims arising out of actual or alleged discrimination, and omissions in terminating employment.
What are the limits of professional liability insurance?
Like all insurance policies, there will be limits to your coverage. Your coverage will cover claims made during an active policy or claims made for previous work if it falls within an agreed-upon timeframe. If you change policy providers, it’s important to consider the timeframe, as work outside of the timeframe will not be covered.
The majority of policies will offer a maximum per claim which is normally $1,000,000. Medium and larger businesses can carry limits of $5,000,000 to $10,000,000 per claim.
How much does professional liability insurance cost?
The cost of personal liability insurance can vary depending on your specialty, as certain professions carry a greater risk of liability, resulting in higher premiums.
The cost of professional liability insurance will depend on:
Industry: Your industry will contribute significantly to your premiums as typically high-risk industries pay higher premiums. Riskier industries can be considered as those that have a large potential risk for bodily injury, financial loss, and the ability to impact the client’s bottom line.
Business size: Small businesses with less than $7.5 million in revenue can expect to pay lower premiums, with the average cost at around $97 per month.
Risk exposure: Professions such as surgeons can expect to pay a higher premium than coaches or photographers as the risks associated are far greater.
Deductibles and coverage limits: Low deductibles and high coverage limits will be reflected in higher premiums. Typically, coverage limits start at around $250,000 and can run into millions of dollars.
Experience in business: As your experience grows in business, you may begin to pay lower premiums.
Employees: As you hire more employees, risks of negligence and potential for claims can grow.
Claims history: The insurer will take your claims history into account. The higher the number of claims in your history, the more likely your premiums will be increased.
How to choose the best professional liability insurance
When looking for the best professional liability insurance policy, here are some key factors to consider before you make a purchase:
Compare insurers: Obtaining quotes from different providers will help you find a policy with the right level of coverage limits and deductibles for you. Most providers will provide suggestions on policies based on your industry, exposure to risks, and your business needs.
Claims process and customer service: When choosing an insurer, it is important to have the ability to file your claims as quickly and efficiently as possible. It’s best to choose an insurer where you can file a claim by phone or online.
Bundle your insurance: Choosing an insurer where you can buy multiple policies and add additional coverage if needed can help reduce your overall premium and earn you discounts on your policy. You’ll also benefit from your policies being in the same place.
