If you own a business and work with clients, it’s a good idea to purchase professional liability insurance. Professional liability insurance, also called errors and omissions (E&O) insurance, pays for your legal defense if a client or customer sues your business for negligence or malpractice. Without professional liability insurance, your business is on the hook financially if you end up in a lawsuit—whether you win or lose.
Professional liability insurance is one of the most valuable business insurance policies that you can have, but not all insurance providers are created equal. To find the best professional liability insurance companies, we started with a list of 17 carriers and closely evaluated each one based on policy options, ease of use, industry specialty, price, and customer satisfaction.
The Best Professional Liability Insurance for 2022
- Best Overall: AIG
- Best for Freelancers and Independent Contractors: Pogo
- Best for Medical and Healthcare Providers: The Doctor’s Company
- Best for Lawyers: Embroker
- Best for Small Businesses: Thimble Insurance
- Best for Realtors: Hiscox
With a variety of policy options for every industry, specialty coverages, and its signature ReputationGuard program, AIG is the best overall professional liability insurance provider.
- Offers professional liability policies for individuals in many different industries
- ReputationGuard coverage protects your brand identity after a lawsuit
- Sells all the standard business insurance products, plus unique policies
- Must get a quote by contacting an agent
- Doesn’t offer general liability insurance policies
Based on our research, AIG is the best overall professional liability insurance provider. The company serves nearly every industry, including aerospace, healthcare, hospitality, construction, transportation, education, and many more. You can choose from a long list of coverages, including specialty options you won’t find elsewhere. No matter what happens, an AIG professional liability policy has you covered.
Through AIG, you can purchase a policy that is designed specifically for the errors that are most common in your specific industry, with unique coverages for robotics professionals, business leaders, and publishers, just to name a few.
Another benefit is its ReputationGuard coverage, which pays for services like crisis communications, media training, rapid response, and social media management if your business gets involved in a major lawsuit. You can also choose to purchase income loss protection as part of the ReputationGuard program.
Although AIG offers a wide variety of business insurance products, it doesn’t offer the most basic one—general liability insurance. Some of the policies available include accident and health insurance, cyber liability insurance, environmental insurance, mergers and acquisitions insurance, and surety bonds.
To get a quote for AIG professional liability insurance, you will need to get in touch with an agent. AIG handles claims via phone and email, and you can refer to the claim reporting guide to find the right contact for your industry and policy type.
BEST FOR FREELANCERS AND INDEPENDENT CONTRACTORSPogo
Pogo’s insurance marketplace is designed specifically for freelancers and sole proprietors, and it can help you find reliable coverage at an affordable price.
- One application provides multiple quotes from different insurance carriers
- Pogo works exclusively with freelancers, so the coverage is tailored to your unique risks
- Many other business insurance policies are available
- No option to get an instant rate quote online
- Doesn’t disclose which insurance companies it partners with
Pogo is a newer insurance company that essentially operates as an online insurance marketplace. It’s our top recommendation for freelancers because the company specializes in coverage for independent contractors and understands the unique risks that self-employed professionals face.
When you fill out the online application, Pogo will match you with several insurance companies that fit your coverage needs based on the type of business you own, the size of your business, your income, and the structure of your business. An agent can also recommend an appropriate amount of coverage to adequately protect your professional liabilities.
In addition to professional liability insurance, freelancers can work with Pogo to purchase general liability insurance, a business owner’s policy, workers’ compensation insurance, cyber liability insurance, business property insurance, business auto insurance, and inland marine coverage.
Pogo is a solid choice for professional liability insurance if you work on a freelance basis, but the company does have some downsides worth mentioning. First, the company doesn’t say which insurance companies it partners with. You’ll have to request a quote in order to see your matches. And once you submit the form, you have to wait for a Pogo agent to reach out with your results.
BEST FOR MEDICAL AND HEALTHCARE PROVIDERSThe Doctor’s Company
The provider above may not be one of the providers in the CommercialInsurance.net network at this time.
Healthcare providers are subject to costly malpractice and negligence lawsuits, but a professional liability policy from The Doctor’s Company offers valuable protection.
- Policies are designed specifically for medical providers and healthcare workers
- Wide variety of professions and workplaces qualify for coverage
- Coverage is available for solo practitioners, small practices, and large health systems
- Website lacks information about what the policies cover
- Have to work with an agent to get a quote or apply for coverage
The Doctor’s Company is the biggest medical malpractice insurance company in the country, and it’s our top pick for professional liability insurance for healthcare workers. The company sells coverage to 80,000 individuals across the country, serving doctors, nurses, dentists, surgeons, and entire healthcare systems.
E&O insurance policies from The Doctor’s Company include a variety of coverages that are not covered by a standard malpractice insurance policy. However, the company does not include much information online about what its policies actually cover.
In addition to E&O insurance, you can also purchase medical malpractice coverage, MediGuard coverage for Medicare/Medicaid claims, CyberGuard coverage for patient data theft, management liability insurance, health and disability insurance, employment practices liability insurance, property and general liability insurance, and workers’ compensation insurance.
One of the unique features of The Doctor’s Company is its rewards program called The Tribute Plan. Every policyholder gets to participate in The Tribute Plan, which pays healthcare workers for being loyal customers and providing their services to patients.
One of the downsides to The Doctor’s Company is that you must work with an agent directly in order to get a quote or buy coverage. There is an online form used to request a quote, but you’ll need to wait for a representative to get in touch before you can start the purchase process.
BEST FOR LAWYERSEmbroker
Embroker’s professional liability policies are designed with lawyers in mind, so you can protect yourself from getting tied up in a lawsuit that might pull you away from billable work.
- Embroker’s policies are specifically tailored for lawyers and others in the legal profession
- Shop for policies online and build a customized insurance package
- Manage your coverage entirely online, from payments to claims
- Coverage isn’t suitable for individuals outside the legal profession
- It’s a newer company, so it lacks financial ratings and real customer reviews
Embroker’s professional liability insurance is the best option on the market for lawyers. Attorney professional liability insurance pays for your own legal defense if a client sues you for negligence, malpractice, misrepresentation, oversight errors, and more.
We like Embroker’s marketplace setup, which allows you to browse coverage and build a policy that meets your specific needs. You can also set personalized coverage limits and choose a deductible that fits your budget. Best of all, you can apply online and get coverage in as little as 10 minutes. Most types of coverage do not require a waiting period.
In addition to professional liability insurance, Embroker also sells tons of different business coverages, including business owner’s policies, commercial crime insurance, cyber liability and data breach insurance, key person insurance, fiduciary liability insurance, surety bonds, and workers’ compensation.
Another reason why Embroker is the best professional liability provider for lawyers is that the coverage is affordable. Embroker is a digital insurer, which allows the company to keep prices low. And if you have questions about your coverage, it’s easy to get in touch with Embroker 24/7 via phone, email, or live chat.
Embroker was the first digital business insurance provider in the country and was founded in 2015. The company started selling lawyers professional liability insurance in 2020.
BEST FOR SMALL BUSINESSESThimble Insurance
Thimble Insurance offers affordable and flexible professional liability insurance, which is ideal for small businesses that have changing coverage needs.
- Coverage is available in a variety of different term lengths
- Policies are affordable, starting at just $36 per month
- Thimble serves a wide variety of professionals, including those in niche industries
- Not available in every state
- Doesn’t support online claims
Thimble Insurance is the best choice for small business professional liability insurance. The coverage is affordable, you can choose how often you want to pay, and the application process is quick and easy. As your company scales, you can easily adjust your coverage through the online customer portal.
Professional liability insurance from Thimble is available for individuals in many different professions, including pet sitters, freelancers, event managers, beauty professionals, janitors, fitness professionals, and more.
One of the best features of Thimble is the flexibility it provides in policy terms and payment options. You can buy annual coverage, or purchase insurance for individual projects that only last a few days or weeks, so you’re not paying for coverage you don’t need.
Thimble’s professional liability insurance policies start at just $36 a month, and instead of paying your premium in one lump sum, you can opt to pay monthly instead.
Thimble sells several other types of business insurance, including general liability insurance, equipment insurance, business owner’s policies, workers’ compensation insurance, malpractice insurance, and even hard-to-find policies, like drone insurance and event insurance.
One of the biggest pain points for Thimble is the fact that the company doesn’t support online claims. If you need to file a claim, you have to contact an agent. Additionally, the company doesn’t sell coverage in Washington, New York, Colorado, Illinois, or Massachusetts.
BEST FOR REALTORSHiscox
Real estate agents and brokers can get reliable professional liability insurance through Hiscox, which provides tailored coverage and worldwide protection.
- Coverage is designed for realtors and the unique risks of working with buyers
- Policies provide coverage anywhere in the world
- Flexible payment schedules available, without added fees
- High number of customer complaints from the National Association of Insurance Commissioners (NAIC)
- Customer support is only available by phone
Hiscox is our recommendation for real estate agents, property managers, and brokers who need professional liability insurance to protect themselves from lawsuits with buyers and sellers. Whether you own a small real estate firm with multiple agents or sell properties by yourself as a side hustle, you can qualify for coverage through Hiscox.
Professional liability insurance policies from Hiscox have flexible payment options. You can choose to pay your annual premium up front or pay in monthly installments, with no added fees.
The coverage is customized for the risks that realtors face, and if you ever need to file a claim, Hiscox will assign a dedicated claims representative to advocate on your behalf. Plus, your coverage applies anywhere in the world, which is ideal for agents who sell properties in multiple countries.
Realtors can purchase a variety of other business insurance policies through Hiscox, including business owner’s policies, general liability insurance, cyber security insurance, workers’ compensation, commercial auto insurance, umbrella insurance, directors and officers insurance, and employment practices liability insurance.
Hiscox is one of the oldest business insurance providers in the country. It was founded in 1905 and today has over 400,000 customers. Hiscox primarily serves small businesses, but coverage is available to companies of all sizes and in many industries.
As you can tell, there are lots of insurance companies on the market that sell professional liability insurance. Finding a company that understands the unique risks of your profession is the challenge.
We stand by all the companies on this list, but our top recommendation is AIG. The company sells reliable insurance for individuals in many different industries, and you won’t find AIG’s specialty coverages, like reputation management and income loss protection, from many other providers.
|Insurance Company||Wins For||Key Feature|
|AIG||Best Overall||ReputationGuard offers brand identity restoration services after a lawsuit|
|Pogo||Best for Freelancers and Independent Contractors||Online insurance marketplace offers multiple policy quotes with one application|
|The Doctor’s Company||Best for Medical and Healthcare Providers||Offers protection for Medicare/Medicaid claims and patient data theft|
|Embroker||Best for Lawyers||Shop for business policies online and build a customized insurance package|
|Thimble Insurance||Best for Small Businesses||Affordable coverage for unique roles, like pet sitters and event managers|
|Hiscox||Best for Realtors||Offers professional liability coverage anywhere in the world|
Frequently Asked Questions
What Is Covered by Professional Liability Insurance?
Professional liability insurance covers your legal fees if a customer sues you for negligence, malpractice, or a mistake that caused the client to lose money. Examples of professional liability claims include missed deadlines, clerical errors, faulty business advice, and poor budget management. Professional liability insurance only covers you against claims that occur while the policy is active.
How Much Does Professional Liability Insurance Cost?
The cost of professional liability insurance depends on a few factors, such as the type of business you own, the size of your business, the amount of coverage you purchase, the deductible, your claims history, and the location of your business. Some insurance companies offer discounts, like paying your annual premium in full, that can lower your rate.
Who Needs Professional Liability Insurance?
If your business provides services to clients, it’s a good idea to purchase professional liability insurance. And if your clients require you to carry this coverage per the terms of your contract, buying a policy is non-negotiable. Professional liability insurance can be beneficial for companies of all sizes and in every industry. Even the smallest businesses can find themselves in the middle of a professional liability lawsuit, which can cost thousands of dollars at a minimum.
What Is the Difference Between General Liability Insurance and Professional Liability Insurance?
General liability insurance and professional liability insurance are two of the most common business insurance policies. General liability insurance covers lawsuits related to bodily injury and property damage, as well advertising injuries, like slander, and medical expenses. Professional liability insurance only covers lawsuits related to business errors and negligence.
How We Chose the Best Professional Liability Insurance Companies
To find the best professional liability insurance companies, we started by making a list of the 17 most popular carriers. We then reviewed each one based on criteria such as policy options, industry specialty, price, ease of use, unique features, and customer service. Finally, we divided our list of best providers into categories to help you decide which might be the best option for your line of work.