8 Best Professional Liability Insurance Companies in 2022
Rebecca Michael has more than 20 years of experience writing for small business and ran her own content business. She was an early employee and content contributor at LegalZoom, specializing in educating SMBs on corporations and LLC business formations.
Professional liability insurance protects businesses from claims of negligence or malpractice related to a service that resulted in a loss to the customer or client. Sometimes called errors & omissions (E&O) coverage, these policies are customized to the specific industry that the business operates in. We reviewed the best professional liability insurance companies on the market and narrowed our list down to our top eight picks:
- CNA: Best overall professional liability insurance company
- The Hartford: Best for technology businesses
- Travelers: Best for financial businesses
- Hiscox: Best for businesses needing E&O policy customization
- AIG: Best for media businesses
- The Doctors Company: Best for medical malpractice coverage for healthcare businesses
- The Hanover Insurance Group: Best for miscellaneous and hard to classify businesses
- CoverWallet: Best broker option for comparing multiple professional liability companies
CNA: Best Overall Professional Liability Insurance Company
CNA is a strong all-around carrier that provides tremendous feature options for professional liability, both as a standalone policy or packaged with other coverages. Much of what makes it our pick for the top professional liability insurance company is its range of industry capabilities that include accountants, architects, dentists, lawyers, consultants, real estate agents, and nurses and nursing agencies which tend to be considered higher risk for professional liability.
| PROS | CONS |
|---|---|
| Standalone and bundled policies with lots of endorsement customizations available for professional liability coverage | No online quoting or customer support; must contact an agent for assistance |
| Coverage limits up to $5 million for many professions and some up to $10 million | Not all claims can be reported online, certain policies require email or fax |
| Broad definition of “professional or technology service” and “insured person” | Certain professional and malpractice liability policies aren’t available in every state |
| Online features include bill payments and risk-management resources | |
| A (Excellent) financial ratings, according to A.M. Best | |
Coverage Highlights
In terms of the specific attributes of CNA’s professional liability coverage, there are a few key highlights to note:
- Worldwide coverage
- Insured person includes current and former directors, officers, partners, employees—full-time, part-time, temporary, and seasonal—and independent contractors
- Broad definition of professional and technology services for more than 50 areas of practice
- No “hammer” clause—insurers must respect the insured’s decision and defend them if they don’t wish to settle a claim
- Coverage for proprietary claims like trademark or copyright infringement and media-related claims like defamation and misappropriation
- Preclaim assistance—paying for investigations into reported potential claims
- Options for defense costs inside and outside the limits
- Coverage for accusations of intentional wrongdoing until final adjudication
Additionally, for those who plan to purchase a business owners policy (BOP) through CNA, certain industries have the option to add professional liability coverage as an endorsement.
Additional Commercial Insurance Policies
Because of the scale in which CNA operates and its current market position in the insurance industry, it can provide businesses with many other coverage options in addition to professional liability insurance. Some of these lines of coverage include:
- Commercial property
- General liability and product liability
- BOP
- Commercial auto
- Cyber liability
- Equipment breakdown
- Inland marine
- Surety bonds
- Umbrella and excess liability
- Management liability
- Workers’ compensation
- Warranty and alternative risk coverage
The Hartford: Best for Technology Businesses
The Hartford is a terrific carrier for small businesses that can write a large range of coverages, including monoline workers’ compensation—a relatively rare type of insurance that’s offered as a standalone policy. While this company can do professional liability for plenty of professional service firms, the supplemental coverages, limits, and policy features specific to information technology (IT) businesses make it our top technology E&O insurance provider.
| PROS | CONS |
|---|---|
| Standalone policies and professional liability endorsements available | No online chat assistance |
| Coverage limits up to $5 million for many professions, up to $10 million for IT | Certain professional liability coverage isn’t available in all states |
| Coverage for prior acts, such as claims for events prior to policy start date, included | Claim reporting only available through fax and email for certain policies |
| Online features include bill payment, claims reporting, policy management, and quoting | |
| A.M. Best A+ (Superior) rating | |
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Coverage Highlights
While The Hartford offers professional liability coverage for a range of specialized professions, including accountants, engineers, and lawyers, it’s best for professionals and businesses in the technology industry, such as software and website developers, tech consultants, IT management firms, hardware manufacturers, and communications service firms. The main coverage highlights for standalone or packaged policies include:
- Coverage limits of up to $10 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 and at a retroactive date
- Broad coverage includes malicious acts by employees
- Supplemental cyber liability, data breach, and media liability coverage
- Coverage for disciplinary proceedings and subpoena assistance
- Reimbursements to clients for lost income and nonlegal expenses that they incur in defense of a claim
- No exclusions for contractual liability, breach of warranties, or failure to perform claims
Additional Commercial Insurance Policies
As one of the largest commercial insurance providers of small to enterprise businesses, The Hartford can also help companies with other insurance needs, including:
- Commercial property
- General liability
- BOPs
- Commercial auto
- Commercial flood
- Home-based business insurance
- Cyber insurance
- Inland marine
- Surety and fidelity bonds
- Commercial umbrella
- Management liability
- Workers’ compensation
Travelers: Best for Financial Businesses
Travelers, though well-known for its home and auto coverages for individuals, is a strong player in the commercial insurance market. Its sweet spot is financial businesses, such as banks, mutual funds, financial advisers and, coincidentally, other insurance companies offering specialty packages and dedicated risk management resources. It’s well-known for its low-cost crime coverages and capability to write nearly all types of commercial policies, including professional liability.
| PROS | CONS |
|---|---|
| Standalone policies and professional liability endorsements available | No online quoting or assistance; must contact agent |
| Specialty insurance packages for financial businesses and has dedicated risk management resources | Certain financial businesses such as mortgage companies are ineligible |
| Online bill payment, claims reporting, claims tracking, and policy management available | Not every state can procure coverage for certain policies |
| A.M. Best A++ (Superior) rating | |
Coverage Highlights
While Travelers can write professional liability coverage for plenty of industries, it has dedicated packages for asset management, insurance, and financial institution businesses. The most notable coverage highlights for these include:
- Defense costs outside of coverage limits
- Broad or extended definitions of covered claims within financial, trust, and lending services
- Worldwide coverage available
- Extended coverage for the firm, directors, officers, and employees
- Security breach expenses covered
- Nonmonetary relief claims
- Crisis event costs like public relations (PR) expenses
- Preclaim investigation costs
Travelers also provides a lot of risk-management resources in the industry of financial services, such as an Employee Retirement Income Security Act of 1974 (ERISA) helpline, SelectOne+ seminar for insurance companies, and precyber breach online hubs for managing cybersecurity.
Additional Commercial Insurance Policies
Travelers can be a great one-stop shop for business and individual insurance needs. On the commercial side, it can write standard and specialized coverages for numerous industries. These coverages include:
- Commercial auto and trucking
- Cyber insurance
- General liability
- Management liability
- Commercial property
- BOP
- Surety bonds
- Workers’ compensation
- Commercial crime
Hiscox: Best for E&O Policy Customization
Hiscox is by far the best insurance company when it comes to tailoring a professional liability policy to your unique needs. Most companies create one-size-fits-all products to handle what they believe are the best covered perils and supplemental coverages required for a given profession—minimizing customization capabilities. However, Hiscox will write E&O policies for numerous industries, letting them alter coverage to their unique risks.
| PROS | CONS |
|---|---|
| Tailored coverage ranging from $250,000–$2,000,000 limits, various deductible options, and coverage features | Defense within limits coverage |
| Insured person includes full-time and temporary employees and independent contractors | Certain exclusions sometimes covered by other carriers aren’t covered by Hiscox, including fraudulent acts or false advertising |
| Online quotes, chat, policy management, and claims reporting available | Narrow definitions of the services that will be covered |
| Will write hard-to-place professions, such as healthcare, therapy, or contractor businesses | |
| A.M. Best A (Excellent) rating | |
Coverage Highlights
Because of the range of industries covered (more than 180) and the amount of policy customization available, the coverage highlights will vary heavily depending on the business and its risk priorities. Some of the general highlights of its professional liability policies, however, include:
- Very simple online quoting process
- Premiums start at $270 per year with plenty of payment options
- Deductible options from $0 to $10,000
- Optional extended reporting period endorsement and retroactive dates available
- Short-term liability coverage options
- Coverage extends to independent contractors
Additional Commercial Insurance Policies
Hiscox primarily specializes in small businesses rather than a certain industry or vertical. It can write all types of standard small business coverages, such as:
- General liability
- BOP
- Commercial auto
- Workers’ compensation
- Umbrella insurance
It offers specialty coverages, including management liability and cyber insurance, in addition to professional liability and malpractice coverages.
AIG: Best for Media Businesses
AIG is one of the largest providers of individual and business insurance in the world. It can write property and casualty coverages and benefits-type coverage—like health, accident, and life insurance. In the scope of professional liability insurance, it is, without question, the best for media businesses because of the specialized coverage features it offers.
| PROS | CONS |
|---|---|
| Specialty coverage features specifically for media businesses | No online quoting or live chat support available |
| Available on a claims-made or occurrence basis | Not as friendly for small businesses as it doesn’t offer BOP |
| Online claims reporting, billing management, and risk-management resources available | |
| A.M. Best A (Excellent) rating | |
Coverage Highlights
While AIG has professional liability insurance designed for several industries, its media insurance product includes several highlights and options that should be interesting to content developers, publishers, and broadcasters. Some of these features include:
- Open-perils coverage: Provides broader coverage than policies written on a named-perils basis, which only cover events specifically listed on the policy
- Media coverage: Responds to claims for all media distributed by the insured and doesn’t require a list of covered media on the policy
- Availability of 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.
- Amended dishonest conduct exclusion: Allows for coverage for first amendment protection
- Advertising coverage: Covers claims arising from the insured’s advertising materials
- Expanded damages: Covers punitive, exemplary, and multiple-claim damages
- Broadened insured definition: Includes coverage for subsidiaries of the insured and additional insureds as required by contracts
Additional Commercial Insurance Policies
AIG’s size and longevity enable it to write all lines of insurance for individuals and businesses. This includes:
- Property
- General liability
- Workers’ compensation
- Life, health, and other benefits-related insurance
As pointed out in the drawbacks section, however, its main limitation is that it cannot write a BOP.
The Doctors Company: Best for Medical Malpractice Coverage
Medical malpractice insurance is typically difficult to shop for because many carriers are wary due to the potential severity of a medical E&O claim. The Doctors Company is an A-rated, physician-owned malpractice insurance company that specializes in all coverages that a healthcare provider might need, including professional liability. Additionally, online risk-management resources are available for assessing risk and educating on patient safety.
| PROS | CONS |
|---|---|
| Physician-owned medical malpractice and professional liability insurer | Online application doesn’t return quotes |
| Lots of online risk-management resources specific to healthcare services businesses | Online claims reporting is limited to submitting a web form to a claims rep |
| Also has E&O options for miscellaneous healthcare services not typically covered in a medical malpractice policy | No online live chat assistance |
| One-stop shop for all lines of insurance a medical provider will need | Only useful for medical professionals and healthcare businesses |
Coverage Highlights
The Doctors Company offers medical malpractice insurance for physicians, surgeons, hospital doctors, dentists, and providers who utilize telehealth. There’s also miscellaneous E&O coverage for healthcare businesses exposed to risks not typically covered in a traditional medical malpractice policy. Some of the main coverage highlights include:
- Free “tail” coverage to protect policyholders after they retire
- MediGuard coverage, which covers claims brought up by Medicare, Medicaid, licensing boards, credentialing reviews, and federal agencies
- Cyber liability protection included in package
Additional Commercial Insurance Policies
Because of the coverage specialization focusing just on healthcare professionals, it also offers commercial products that they would need, such as:
- Management liability
- Health and disability
- Employment practices liability insurance
- Commercial property
- General liability
- Workers’ compensation
The Hanover Insurance Group: Best for Miscellaneous and Hard-to-Classify Businesses
Hanover Insurance is a large player in the world of small business insurance. It offers plenty of online risk-management resources and limitless commercial policies it can write, including professional liability coverage. It stands out for the personal, business, and professional service businesses that are hard to classify but still need coverage for E&O claims.
| PROS | CONS |
|---|---|
| More than 40 miscellaneous business categories for professional liability insurance | No online quoting and must contact an agent for assistance |
| Strong online capabilities for risk-management resources and filing claims | Inconsistent financial ratings through the years |
| Many policies include an array of supplemental coverages, such as crisis event expense, reputation protection, and subpoena assistance | |
| A+ (excellent) AM Best rating | |
Coverage Highlights
Hanover Insurance offers professional liability coverage for some of those less-common businesses, such as arbitrators, claims adjusters, event planners, lobbyists, payroll services, and private investigators. Some of its main E&O coverage highlights include:
- Option for retroactive date in policy
- Supplemental coverages for disciplinary proceedings, subpoena assistance, crisis event expense, reputation protection, and withheld client fee assistance
- Options for claims inside or outside of the limit
Additional Commercial Insurance Policies
Hanover can also help your small business with other commercial products, including:
- Commercial auto
- BOP
- Cyber insurance
- General liability
- Inland marine
- Commercial property
- Umbrella insurance
- Workers’ compensation
It can also write a variety of contract and commercial surety bonds and individual home and auto policies.
CoverWallet: Best Broker Option for Comparing Multiple Professional Liability Companies
While not technically an insurance carrier, 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’s an excellent alternative for those who might struggle to navigate the professional liability market. CoverWallet is also our pick for the top overall insurance broker for its carrier partners, ease of use, and expert assistance.
| PROS | CONS |
|---|---|
| Online quotes available within minutes of applying | Representing multiple carriers creates different claims and policy management processes for each carrier |
| Application often results in multiple offers from a variety of carriers | Additional fees may apply |
| Online tools for policy and claims management and live chat support | No clear, standout E&O policy features because the policies are written by different carriers |
Coverage Highlights
Because it’s technically a broker, the coverage features for CoverWallet will depend on the carrier that you receive quotes and purchase professional liability coverage from. This platform does sell for CNA and Hiscox, two companies that made our list, and other insurance providers that have a place in the professional liability market like Chubb and Liberty Mutual.
Additional Commercial Insurance Policies
CoverWallet is only restricted by the policies that the carriers it represents can underwrite. With that said, it can help businesses procure essentially any line of standard and specialty insurance coverage through its best-in-class carriers that include Employers, Berkshire Hathaway Guard, Progressive, and Markel.
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 features and options: Professional liability policies can contain many different coverage aspects, such as claims-made vs occurrence, worldwide coverage, or whether defense costs are inside or outside the limit. We looked at the company’s ability to provide these coverage features and the degree to which it lets you customize your policy.
- Additional online services: We also evaluated the company’s ability to provide additional insurance services through their websites, such as claims management tools, online risk-management resources, or easy communication access with a rep through live chat.
- Other insurance policies: Offering other insurance policies that a small business might need allows them to keep everything centralized with one carrier for billing and policy management. Therefore, we looked at the carriers’ capabilities for writing other lines of insurance in addition to the professional liability.
How To Compare Professional Liability Insurance Policies
Like other coverages, professional liability insurance policies are complicated and come with other comparable attributes aside from the premium or coverage limits. When shopping around for your insurance, we recommend getting multiple quote options and evaluating each carrier based on the following criteria:
- Premiums: A key factor in evaluating a policy is the price that you will pay monthly for the coverage. Premium rates are fairly consistent amongst carriers based on your revenue and risk factors but can be altered by increasing your deductible, lowering limits, or not selecting supplemental coverages found within the policies.
- Deductible: Selecting a higher deductible typically results in a lower premium, but it also means you pay more in the result of a claim. You need to make sure you budget enough in cash reserves to cover the deductible in the event of a negligence claim against your business.
- 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. Claims-made only covers you for claims that occur and are reported during the policy period and through the extended reporting period.
- Coverage limits & supplemental coverages: 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. Some carriers also will put small supplemental coverage limits in certain professional liability policies such as data security or media liability for specific industries.
- “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 policy features and pricing is essential to selecting the best E&O insurance companies for your business. This is why it’s always a good idea to work with an insurance agent, broker, or other professional who can help you understand the coverage and navigate the marketplace.
Bottom Line
Professional liability coverage will protect you financially from the costs associated with a claim that you were negligent in a service you provided. This includes legal costs, damages, and settlement costs. Although there are infinite professional liability insurance companies available, each one will vary in its financial strength, coverage features, industry specialties, and additional services—making it important to understand your options and how they differ.
