Blog Articles: Professional Liability Insurance

What Is Professional Liability Insurance Coverage?

Professional liability insurance protects businesses when employees make mistakes in the professional services they’ve provided to customers or clients. This coverage is also known as errors and omissions insurance (E&O). Even if you’re an expert in your business, mistakes happen. And if your client or customer thinks a mistake in your professional services caused a financial loss, they can sue you.

Why Is Professional Liability Insurance Important?

If your business offers professional services and you don't have professional liability coverage, you can be held liable if a customer believes you made a mistake. Even if it didn’t cause them financial loss, you can still get sued. Small business owners should consider having professional liability coverage because it protects businesses when they need it most. You should especially consider having this coverage if you:

Provide professional services
Offer advice to clients
Are required to have complete coverage

What Does Professional Liability Insurance Cover?

Professional liability insurance for small businesses can help protect against claims of:

Negligence

Misrepresentation

Inaccurate Advice

Personal Injury

Copyright Infringement

Defense Costs

Who Needs Professional Liability Insurance Coverage?

Professional liability insurance is an important coverage that business owners who provide a service to a client or customer should have. You’ll want to get professional liability insurance coverage if you:

Have to sign a contract that requires you to carry coverage
Offer professional services directly to customers
Regularly give advice to clients

Be aware that some states require this type of business insurance. Learn more about who needs professional liability insurance today.

We offer professional liability insurance for a number of different industries, including the following:

Accountants

Consultants

Market Research Firms

Interior Designers

Advertising Agencies

Graphic Designers

Technology Professionals

Healthcare Professionals

How Much Does Professional Liability Insurance Cost?

Your cost is unique to your business. What you pay for professional liability insurance will vary by product, limits chosen and risk class or hazard group of your business.

ProductAvg. Minimum Monthly Premium***1Misc. Professional Liability Standalone Coverage$62Misc. Professional Liability Endorsements$41Architects and Engineers Professional Liability$239Healthcare Professionals Professional Liability$38Errors & Omissions Insurance for Technology Companies$146

*** Quotes will vary by business depending on the size of your business, the state your business is located in, coverage limits chosen, and the risk class your business is associated with.

Factors that can impact your professional liability insurance cost include:

Policy details, like coverage limits
Type of business
Location
Business size, number of employees and clients
Years in business
Claims history

You can work with our specialists to get the right amount of errors and omissions (E&O) insurance coverage for your business. Backed by more than 200 years of experience, we can help protect you with professional liability insurance for small business.

Information from: thehartford.com

2025-04-04 09:07:57