Business owners need professional liability insurance in case clients accuse them of making mistakes that cause a financial loss. These policies, sometimes called errors & omissions (E&O) insurance, can be tailored to cover industry-related risks. We reviewed more than 25 of the top liability insurance providers and narrowed it down to the eight best:
- CNA: Overall best professional liability insurance company
- The Hartford: Best for business consultants and technology consultants who need contractual liability coverage
- Travelers: Best for financial planners, accountants, tax preparers, and credit counselors
- Hiscox: Best for independent contractors who want to save money
- Embroker: Best for small law firms that want fast coverage
- AIG: Best for publishers and broadcasters with media liability exposures
- CoverWallet: Best for comparing coverage to get the best deal
- The Doctors Company: Best for healthcare providers who need E&O insurance for additional services
CNA: Best Overall Professional Liability Insurance Company
CNA earns the best overall professional liability insurance company spot because of its financial strength, broad definition of professional services, and ability to offer limits up to $5 million. These features allow CNA to write stand-alone policies for a wide range of professionals while offering a professional liability endorsement on its business owner’s policy (BOP) for other business owners.
CNA Strengths | CNA Weaknesses |
|---|---|
Stand-alone policies and professional liability endorsements available | No online quoting |
Coverage limits up to $5 million for many professions | No online customer service assistance |
Worldwide coverage for current and former officers, directors, partners, employees, and independent contractors | Policies may not be available in all states |
Online bill payment available | Claim reporting only available through fax and email |
A.M. Best A (Excellent) rating |
Coverage Highlights
In addition to offering coverage limits of up to $5 million to many business owners, CNA features several unique options, including:
- Worldwide coverage
- Coverage for current and former directors, officers, partners, employees, and independent contractors
- Coverage for trademark or copyright infringement, defamation, and misappropriation
- Preclaim assistance, paying for investigations into reported potential claims
- Defense costs outside of limits, leaving more money available for judgments or settlements
- Coverage for accusations of intentional wrongdoing until final adjudication
CNA also offers a professional liability endorsement on its BOP. The coverage is less extensive than its stand-alone policy but may be sufficient for businesses that aren’t traditionally considered professions like pastors, photographers, and florists.
Additional Commercial Insurance Policies
CNA specializes in commercial lines of insurance and is a leader in professional liability. Depending on your industry, you can also go to CNA for standard small business policies, such as:
- General liability
- BOP
- Workers’ compensation
- Commercial auto
CNA can also offer rarer coverage, such as cyber, inland marine, equipment breakdown, and employment practices liability insurance (EPLI).
The Hartford: Best Professional Liability Insurance for Business Consultants
The Hartford is a small business insurance innovator that dives into industry trends to develop broad coverage and policy options that make sense. Key professional liability insurance add-ons for consultants include coverage for disciplinary proceedings and subpoena assistance, plus it has full coverage for prior acts for most consultants. Information technology (IT) professionals, in particular, should look into The Hartford’s FailSafe product, which offers breach of warranty coverage without a contractual liability exclusion.
The Hartford Strengths | The Hartford Weaknesses |
|---|---|
Stand-alone policies and professional liability endorsements available | No online quoting for professional liability insurance |
Coverage limits up to $5 million for many professions, up to $10 million for IT | No online chat assistance |
Coverage for prior acts, such as claims for events prior to policy start date, included | Coverage may not be available in all states |
Online bill payment, claims reporting, and policy management available | Claim reporting only available through fax and email |
A.M. Best A+ (Superior) rating |
Coverage Highlights
The Hartford offers a stand-alone professional liability policy for 34 business classes, including 16 specific types of consultants. Coverage highlights include:
- Coverage limits of up to $5 million and deductibles up to $25,000
- Extended reporting periods to minimize coverage gaps
- Prior acts coverage for events occurring before the policy start date
- Cyber liability coverage
- Coverage for disciplinary proceedings
- Subpoena assistance
- Reimbursements to clients for lost income and nonlegal expense they incur in defense of a claim
Additionally, The Hartford offers FailSafe, a unique professional liability product for technology businesses. The key highlight of FailSafe is coverage for contractual liabilities that typically are excluded from professional liability policies, but the product also includes coverage for failing to prevent:
- Denial of service attacks
- Unauthorized access to or use of systems, network, data, software, or firmware
- Introduction of malicious code
- Malicious acts of rogue employees
- Identity theft or disclosure of personal information
Both FailSafe and professional liability coverage for most other consultants can be purchased on their own or added to a BOP.
Additional Commercial Insurance Policies
For small businesses, The Hartford offers fundamental insurance policies, including general liability and commercial property bundled in a BOP. The Hartford is also a leader in workers’ compensation insurance and has benefits packages specifically designed for businesses with fewer than 50 employees.
Professional liability is a necessary coverage, but most small businesses need BOPs.
Travelers: Best Professional Liability Insurance for Finance Businesses
Travelers is one of the best E&O insurance companies for the finance industry, offering coverage to certified public accountants (CPAs) and bookkeepers as well as credit unions and banks. Specifically for accountants, Travelers offers professional liability that covers crisis event costs, preclaim assistance, and security breach notification and remediation. These coverages can be tailored to your firm’s unique insurance needs.
Travelers Strengths | Travelers Strengths |
|---|---|
Stand-alone policies and professional liability endorsements available | No online quotes or applications |
Coverage extends to current and former officers, directors, partners, and employees | No online chat assistance |
Online bill payment, claims reporting, claims tracking, and policy management available | Coverage only available in 42 states |
A.M. Best A++ (Superior) rating | Collection agencies, mortgage and loan companies, and financial institutions with custody or control of customers’ monies are ineligible |
Coverage Highlights
According to the application, businesses with less than $100,000 in revenue can get up to $1 million in coverage with no deductible. Larger firms have the option of higher limits and can choose deductibles ranging from $0 to $5,000. Moreover, Travelers’ professional liability insurance for small financial firms includes coverage for:
- Defense costs outside of coverage limits
- Security breach expenses
- Claims over investment advising
- Crisis event costs like public relations expenses
- Preclaim investigation costs
Part of Travelers’ professional liability coverage is access to a risk management hotline and a one-hour consultation with a professional liability defense firm.
Additional Commercial Insurance Policies
As one of the larger insurance carriers, Travelers can provide businesses with standard policies like BOPs, commercial auto, and workers’ compensation. Business owners can also tailor Travelers’ business owner’s policy, called Master Pac, to include many of these as well as industry-specific coverages.
One of the highlights of working with Travelers is speaking to a local agent, who can walk you through your coverage needs.
Hiscox: Best Professional Liability for Independent Contractors
While Hiscox specializes in competitively priced policies for small businesses, its ability to provide short-term professional liability makes it one of the best E&O insurance companies for independent contractors. Opting for on-demand professional liability that lasts anywhere from a few hours to a full year can help solopreneurs afford this essential coverage.
Travelers Strengths | Travelers Strengths |
|---|---|
Coverage limits of up to $5 million available when you speak to an agent | Coverage only extends to employees, not to independent contractors |
Short-term professional liability coverage available | Short-term policy not available in Washington, New York, Illinois, Colorado, or Massachusetts |
Fast, online quotes | Defense within limits coverage |
Discounts available for buying additional policies | |
Online chat, policy management, and claims reporting available | |
A.M. Best A (Excellent) rating |
Coverage Highlights
Business owners who get an online quote from Hiscox can see coverage limits of up to $2 million. However, those limits can go up to $5 million once a Hiscox underwriter reviews the application.
Other professional liability coverage highlights include:
- Policies starting at $22.50 per month
- Available on a yearly, monthly, weekly, daily, or hourly basis
- Pays for claims from work completed prior to the start of the policy
- Deductible options from $0 to $10,000
Additional Commercial Insurance Policies
Hiscox’s top insurance products for small business owners include general liability, professional liability, business owner’s policy, and cybersecurity. For other insurance policies, such as umbrella liability, commercial auto, and directors and officers, Hiscox partners with online insurance broker CyberPolicy.
Embroker: Best Professional Liability Insurance for Lawyers
Originally an online broker, Embroker has developed a proprietary professional liability product for lawyers. Attorneys who need quality coverage fast should consider submitting an application through Embroker. Quotes appear in 15 minutes or less, and policies can be purchased online immediately.
Embroker Strengths | Embroker Weaknesses |
|---|---|
Simple application returns professional liability quotes for lawyers in minutes | Financial strength, service, and claims process varies for non-proprietary products |
Online claims reporting and chat assistance available | Firms with more than 10 lawyers may be declined |
Application can return multiple quotes | Claim expenses reduce overall limits |
Free, no-obligation review of current coverage | |
Legal professional liability product developed with A.M. Best A+ (Superior) rated insurer |
Coverage Highlights
Embroker’s legal professional liability insurance is a claims-made policy and includes:
- Reasonable public relations expenses incurred during a crisis event
- Expenses resulting from disciplinary proceedings
- Coverage for past, present, and future directors, officers, shareholders, partners, and attorneys
- Coverage for investigations into reported events before they become claims
- Separate limit for claims expenses, meaning these costs do not affect your policy’s aggregate limit
If they face a claim, lawyers who purchase Embroker’s legal professional liability coverage also have a say in whether or not the insurer settles. However, the insurer can reduce the payout if the policyholder refuses a settlement that is both acceptable to the claimant and within the policyholder’s liability limits.
Additional Commercial Insurance Policies
Embroker is an online broker, which means it works with multiple carriers to provide coverage to small business owners. As a result, it can offer most of the policies its partners create. These policies include general liability, workers’ compensation, commercial property, commercial auto, and product liability.
In addition to its legal malpractice insurance, Embroker offers a free risk review to help you decide if your current coverage is sufficient.
AIG: Best Professional Liability Insurance for Publishers & Broadcasters
As a top errors and omissions insurance company, AIG offers professional liability coverage tailored to several industries. Publishers and broadcasters should consider its media liability product that covers a wide range of professional liabilities associated with developing and disseminating content, including accusations of negligence in the quality of the material, infliction of emotional distress, and outrageous conduct.
AIG Strengths | AIG Weaknesses |
|---|---|
Open-perils form, such as covers any event not specifically excluded in the policy, for broadcasters and publishers | No online application or quotes |
Available on a claims-made or occurrence basis | No online support |
Online claims reporting available | |
Free, no-obligation review of current coverage | |
A.M. Best A (Excellent) rating |
Coverage Highlights
While AIG has professional liability insurance designed for several industries, it’s media liability insurance includes several highlights and options that should be interesting to publishers and broadcasters. These include:
- Open-perils coverage: AIG’s open-perils policy provides broader coverage than policies written on a named-perils basis, which only cover events specifically listed on the policy.
- Available on a claims-made or occurrence coverage: Claims-made policies respond regardless of when the act triggering coverage happens; occurrence policies cover acts that occur when the policy is in force.
- Covers all of the insured’s distributed media: AIG does not require policyholders to supply a list of all of their media to ensure coverage.
Additional Commercial Insurance Policies
AIG is a massive insurance carrier with the ability to write liability and property policies of all kinds to both private and public companies. This includes the most common policies, from general liability and workers’ compensation to highly specialized policies, such as:
- Product liability
- Environmental insurance
- Management liability
- Political risk insurance
In addition to commercial lines, AIG offers personal lines and retirement services.
CoverWallet: Best Professional Liability Insurance for Comparing Offers
CoverWallet is an award-winning broker that uses proprietary technology to walk clients through the application process and shop prices among the best carriers. Because CoverWallet works with multiple carriers, it can cover many industries. Most business owners see offers from two or more carriers from a single online application, making it easy for them to compare quotes and policy terms.
CoverWallet Strengths | CoverWallet Weaknesses |
|---|---|
Online quotes available within minutes of applying | Services and claims processes vary by insurer |
Application often results in multiple offers | Financial strength varies by insurer |
Assistance available via chat, email, and phone | Additional fees may apply |
Policyholders can manage policies and make payments online |
Coverage Highlights
As a broker, CoverWallet acts as the go-between for business owners and insurance carriers, so it doesn’t sell a particular product. Working with a broker, however, does have its advantages. One major plus is the opportunity to compare policies and premiums from multiple carriers. This way, you can get the right policies for your unique situation.
Additional Commercial Insurance Policies
Business owners who submit applications with CoverWallet can usually get quotes from top carriers, which means they have access to most of the insurance policies those carriers offer. CoverWallet’s insurance partners include Liberty Mutual, Markel, and Berkshire Hathaway Guard.
The Doctors Company: Best Professional Liability Insurance for Physicians
The Doctors Company specializes in medical malpractice insurance and other professional liability policies for the healthcare industry. As the largest physician-owned insurance provider in the nation, The Doctors Company has unique insight regarding the liability risks and coverage needs in the healthcare industry. This makes it an ideal option for physicians, dentists, and surgeons.
The Doctors Company Strengths | The Doctors Company Weaknesses |
|---|---|
Physician-owned medical malpractice and professional liability insurer | Online application does not return quotes |
Insurance, risk management assistance, and continuing education classes available for members | Limited property insurance options |
Tribute Plan provides financial rewards for professional liability policyholders | No online assistance |
Chosen insurance providers of six national and 32 regional medical organizations | Coverage only available for physicians, surgeons, dentists, and healthcare facilities |
A.M. Best A (Excellent) rating |
Coverage Highlights
The Doctors Company offers medical malpractice insurance for doctors and dentists. Coverage highlights include:
- Free tail coverage to protect policyholders after they retire
- Legal representation in administrative actions
- Cyber liability protection
Additionally, The Doctors Company has errors and omissions coverage for practices with services that fall outside the scope of traditional medical malpractice, such as:
- Managed care
- Expert witness
- Medical billing
- Claims review
- Employee leasing
Additional Commercial Insurance Policies
The Doctors Company’s main focus is on liability coverage for doctors, surgeons, dentists, and medical facilities, including medical malpractice, employment practices liability, workers’ compensation, cyber liability, and general liability. The Doctors Company also offers a specific coverage, MediGuard, for regulatory reviews like actions brought by Medicare or Medicaid.
How We Evaluated E&O Insurance Companies
The criteria we used to evaluate the best professional liability insurance companies include:
- Financial strength: You want to pick a financially sound insurance provider that can pay claims if they occur, so we looked at ratings from A.M. Best, the credit rating agency focused on the insurance industry.
- Coverage options: Professional liability policies can have a variety of coverage features that can increase their value, so we looked for insurers that offer options like claims-made policies, worldwide coverage, and defense costs paid outside of limits.
- Online features: We gave high marks to insurance companies that make small business owners’ lives easier by offering online applications, chat features, and claims reporting.
- Other insurance policies: Offering other small business insurance can make managing policies easier while also minimizing the potential for coverage gaps.
How to Compare Professional Liability Insurance Policies
How much your professional liability insurance costs is an important part of buying a policy. However, that shouldn’t be your only concern. The cheapest coverage doesn’t do you any good if it comes up short if you have to file a claim, so you also need to look at the policy terms. For example, you want to evaluate:
- Your deductible: Selecting a higher deductible typically results in a lower premium, but it also means you pay more in claims. Ask yourself how much you can afford to pay in premium each month while still saving the amount you would need to cover should you face a lawsuit.
- Policy form: Liability policies can be written on a claims-made or occurrence basis. Occurrence policies usually cost more because they cover incidents that occur during the policy term regardless of when a claim is filed.
- Coverage limits: E&O policies have two coverage limits. The aggregate is the total your insurer pays for the policy term, and the per occurrence is the amount it pays for each claim. Lowering either limit generally reduces your premium, but it can also mean you reach your limit quickly.
- “Duty to defend” language: When a professional liability policy has “duty to defend” language, the insurer must pay for the insured’s defense up to the policy limits even if coverage for the claim is in doubt.
While there are a lot of parts to consider, comparing offers is essential to getting the best E&O insurance for your business. This is one reason it’s a good idea to work with an insurance professional who can help you understand the coverage.
Bottom Line
No one is perfect, and even the most professional business owners make mistakes. Professional liability insurance covers you if you make a mistake and when unhappy clients file frivolous lawsuits. Professional liability policies pay claim settlements and other legal costs incurred when defending your name and your company’s brand.
