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Comparative Analysis of Best Professional Liability Insurance Carriers

Author: Kimberlee | October 18, 2024

Edited by: Kimberlee and Reviewed: Kimberlee

Why is Choosing the Right Professional Liability Provider Important?

Doing your job professionally is something that you take pride in. With that said, mistakes do happen, and getting sued for erroneous professional acts is possible. Getting the right professional liability provider is important as it ensures that you will have a team on your side should a claim arise. The carrier is the one who provides the legal team to defend you and pays any judgments or settlements. Getting the wrong carrier could lead to a mediocre claim defense and costly judgement. 

When looking for the best business insurance for your LLC or small business, consider these carriers to get a fair price with excellent service and claims support.  

Top Professional Liability Insurance Companies

  • Best Overall: The Hartford
  • Best for Micro Businesses: Hiscox
  • Best for Lawyers: Travelers
  • Best for Media Organizations: Chubb
  • Best for Architects and Engineers: Nationwide

The Hartford: Best Overall

Overview

The Hartford has been serving small business customers for more than 200 years, with more than one million small business customers.

Its professional liability policy, also known as errors and omissions (E&O), covers negligence, misrepresentation, inaccurate advice, personal injury, and copyright infringement. It also pays for the defense costs associated with a claim.

The Hartford representatives are professional and knowledgeable and can help you determine the right amount of coverage for your business. 

Pros and Cons

Pros:
  • A long history of helping small business owners
  • Competitive pricing that makes sense to your bottom line
  • Excellent ratings from AM Best demonstrating financial strength
Cons: 
  • It may require extra paperwork in the underwriting process

Customer Reviews

The Hartford liability insurance has a 4.8-star average review with 882 reviews made on its platform. Users who like the product are thankful for The Hartford when a claim arises and find the process easy to navigate. Those who don’t like the product claim that they are slow to process things and are difficult to get ahold of once you have a claim. 

Get a quote with The Hartford today. 

Hiscox: Best for Micro Businesses

Overview

Hiscox has developed their business model to accommodate the needs of truly small businesses.

A micro business is any business with five or fewer employees. Hiscox’s professional liability policies are designed to cover these businesses with a price that beats most competitors.

Quotes vary depending on the size of the company and the revenues it generates. The higher the revenues, the higher the costs. Policy coverage exists worldwide, so while you’re insured in the state you reside in, you have protection anywhere you might do business.  

Pros and Cons

Pros:
  • Designed for small companies with limited budgets
  • Offers worldwide coverage on claims
  • It might cover some claims that happened prior to being insured with Hiscox
Cons:
  • It does not cover medical, nursing, legal, or actuarial services

Customer Reviews

Hiscox gets an average 4.7-star review on Google reviews. This is with more than 2,230 reviews left. Those who like it say that the agents are professional and helpful. They appreciate the insights agents provide during the underwriting process. Those who gave negative reviews say that it was easy to get started but get ignored when trying to file a claim. 

Get a quote with Hiscox today.  

Travelers: Best for Lawyers

Overview

Travelers has an AM Best rating of A++, which is superior in the rankings. This means that Travelers has the strongest financial solvency possible, with good asset management and claims-paying ability.

It offers a specific professional liability policy for attorneys, highlighting the higher risks associated with the profession. Policies can be tailored to fit a business’s specific needs, providing the coverage necessary to have adequate protection. 

Pros and Cons

Pros: 
  • Highest AM Best rating possible
  • Specialized policies dealing with industry risks
  • Ranks 6th in J.D. Power Insurance Shopping Study for claims
Cons:
  • Prices may not be as competitive as other carriers

Customer Reviews

Travelers does not fare well with its Better Business Bureau reviews. It garnered only a 1.05-average star review with 291 reviews. Complaints have to do with underwriting issues that led to confusion and cancelations. Those who highly rate the carrier like how claims are handled and the friendliness of claims representatives. 

Get a quote from Travelers today.

Chubb: Best for Media Organizations

Overview

Chubb Insurance traces its history to 1792, giving it centuries of experience handling a small business’s insurance needs. When it comes to professional liability insurance, Chubb knows that different industries face unique risks. It has created a specialized professional liability policy for media organizations that deals with the exposures publishers and producers face when talking about individuals and companies. Chubb has an A++ from AM Best, demonstrating the strongest financial security possible. 

Pros and Cons

Pros: 
  • A long history of helping businesses protect against risks
  • Highest possible AM Best rating
  • Specialized policies to deal with unique industry risks
Cons:
  • Not always the cheapest policy a business can find

Customer Reviews

Cubb Trustpilot reviews are a mix of personal insurance and business insurance. It gets an average 1.4-star review out of 586 reviews. Those who like the company like the people they have worked with in the underwriting and claims process. Those who rate the company poorly have trouble with online forms crashing and not being able to process the information needed for underwriting or claims. 

Get a quote from Chubb today.  

Nationwide: Best for Architects and Engineers

Overview

Nationwide is most widely known for its personal insurance lines, such as home and auto insurance. However, they have a robust set of policies dedicated to helping business owners protect against risks. They offer a specialized policy for several industries, noting the risks associated with those industries. Their architects and engineers professional liability insurance policy deals with the unique risks associated with designing and building assets. It received an A from AM Best, which represents strong financial management, though this isn’t the highest possible rating. 

Pros and Cons

Pros:
  • Customizes liability programs to meet the needs of the industry it is serving
  • Builds long-term relationships to help serve as a business partner to companies
  • Competitive pricing for a wide range of industries
Cons:
  • Comes in below average for claims satisfaction in J.D. Power Insurance Study

Customer Reviews

Nationwide hasn’t gotten a good rating on the Better Business Bureau’s site, with only an average of 1.13 stars in  366 reviews. Those who dislike the company have problems with claims, while those who like the company appreciate the service Nationwide provides. Those who like the company appreciate the timeliness of claims processing and overall handling of the situation. 

Get a quote from Nationwide today.

How to Choose the Right Policy

Getting the right policy can take some time and effort on your part. In the end, you want to make an effort and do your due diligence to ensure that you have the policy you need with a company that will back you in a claim. 

Assess Your Risk

Determine what your risk is and how much coverage you need from a policy. There are a lot of resources online that help you assess risk. However, the key is to protect your company’s assets and revenue in a claim. Make sure you have enough coverage to do that. 

Get Multiple Quotes

Shop around with your coverage needs. Some carriers have an appetite for a specific industry and offer better pricing for those companies. Make sure you compare like coverage with like coverage to ensure you are getting an accurate quote. 

Check Financial Stability of Insurers

AM Best is the industry leader for rating companies on their financial stability. Look for companies with an A rating or higher. These are the companies that have demonstrated that they have the financial assets to handle catastrophic losses and are most likely to be able to pay claims. 

Read Policy Exclusions Carefully

It’s important to know what the policy does and does not cover. Ask your insurance agent for a dummy policy so that you can read through the exclusions. Understand what isn’t covered and talk to the agent about getting a policy that can fill the gap if necessary. 

Find the Best Professional Liability Insurance for Your Needs

Whether you’re looking for the best insurance for an ecommerce company or want to protect your consulting firm from professional lawsuits, look for companies that have a history of insuring your industry satisfactorily. The companies on our list are a good start to shop around with because they have a strong reputation for protecting a wide variety of industries. 

Frequently Asked Questions (FAQs)

Is professional liability insurance worth it?

If you provide a service to the public, you will want to get a professional liability policy. One claim pays for the policy, and a claim can happen to anyone. It is definitely worth the cost for the protection you receive. 

How do I choose the best professional liability insurance for my business?

Take the time to research possible companies. Look at the AM Best rating as well as claims satisfaction for the company. You want to work with a company that is highly solvent and has a reputation for making the claims process easy. 

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