ERGO NEXT tops our rankings for the best professional liability insurance in Alabama with competitive rates, excellent customer service and an easy-to-manage digital experience. The Hartford places second as the cheapest professional indemnity insurer in the state with rates averaging $70 monthly. Simply Business, Coverdash and biBerk follow as strong options you should also consider in your search for the top errors and omissions insurance in Alabama.
Best Professional Liability Insurance in Alabama
Get AL professional liability insurance quotes starting at $27 monthly from MoneyGeek's top companies like ERGO NEXT, The Hartford and Simply Business.
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Updated: February 2, 2026
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Professional Liability Insurance in Alabama: Key Takeaways
ERGO NEXT provides the best professional liability insurance in Alabama, while The Hartford delivers the most affordable coverage starting at $70 monthly (Read More).
Professional liability insurance costs in Alabama average $77 monthly ($918 annually), placing the state among the more affordable options nationwide (Read More).
Professional liability insurance protects Alabama businesses from financial losses arising from professional mistakes, missed deadlines and claims of inadequate work performance (Read More).
Alabama doesn't mandate professional liability insurance for most businesses, though health care providers and other licensed professionals often face industry-specific coverage requirements (Read More).
Alabama business owners should request small business insurance quotes from multiple providers to compare coverage limits, deductibles and premium costs for their specific industry (Read More).
Best Professional Liability Insurance Companies in Alabama
| ERGO NEXT | 4.73 | $72 |
| The Hartford | 4.71 | $70 |
| Simply Business | 4.51 | $75 |
| Coverdash | 4.45 | $76 |
| biBERK | 4.43 | $78 |
| Nationwide | 4.43 | $81 |
| Progressive Commercial | 4.40 | $74 |
| Hiscox | 4.37 | $76 |
| Chubb | 4.25 | $87 |
| Thimble | 4.25 | $75 |
How Did We Determine the Best Professional Liability Insurance in Alabama?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
LEARN MORE ABOUT BUSINESS INSURANCE IN ALABAMA
Professional liability insurance in Alabama covers just one aspect of business protection. MoneyGeek offers these additional state-specific resources to help you build comprehensive coverage:
1. ERGO NEXT: Best Professional Liability Insurance in AL
pros
Tops MoneyGeek's Alabama professional liability insurance rankings
First nationally for customer service and digital experience
Coverage in 10 minutes with instant certificates
Personalized matching for coverage types and amounts
Backed by Munich Re's A+ Superior financial rating
cons
Founded 2016, newer than traditional 100+ year insurers
Claims handling ranks fourth nationally among surveyed customers
$5 million revenue cap limits larger business eligibility
COMPANY HIGHLIGHTS
ERGO NEXT tops Alabama's professional liability insurance rankings with the state's second-lowest rates and the nation's best digital experience. Birmingham consultants and Huntsville tech professionals pay $72 monthly ($860 annually), $5 below the state average.
The 10-minute online application and instant certificate access earned ERGO NEXT a 4.8 national digital experience score, while its mobile app lets Mobile contractors and Montgomery engineers manage policies anytime. Backed by Munich Re's A+ Superior AM Best rating, ERGO NEXT provides strong financial support, though claims processing times lag some competitors.
2. The Hartford: Cheapest Professional Liability Insurance in AL
pros
Lowest professional liability rates in Alabama
First nationally for claims process and overall customer satisfaction
Strongest financial stability with A+ Superior AM Best rating
Over 200 years experience serving 1.5 million small businesses
Limits up to $10 million for high-exposure professions
cons
Digital experience ranks 10th nationally among surveyed customers
Not available in Alaska and Hawaii
Agent-based model slower than fully digital competitors
COMPANY HIGHLIGHTS
The Hartford earns Alabama's cheapest professional liability insurance ranking with rates averaging $70 monthly ($841 annually), $7 below the state average. Birmingham accountants and Mobile real estate professionals benefit from the lowest rates across 41 industries, including dental practices and consulting services.
Customer surveys rank The Hartford first nationally for claims processing and overall satisfaction, with policyholders praising straightforward procedures and quick resolutions. Backed by an A+ Superior AM Best rating and 200+ years of experience, The Hartford balances affordability with reliable service, though its digital experience trails mobile-first competitors.
3. Simply Business: Best Professional Liability Insurance Coverage Option in AL
pros
Ranks first nationally for coverage options across carriers
Compares quotes from 16+ top-rated insurers in minutes
Backed by Travelers' A++ Superior AM Best rating
Digital experience ranks third nationally
Finds coverage for hard-to-insure specialty businesses
cons
Claims process ranks eighth nationally among surveyed customers
Broker model means claims handled by third-party carriers
Customer service ranks seventh with mixed response times
COMPANY HIGHLIGHTS
Simply Business earns Alabama's best coverage ranking by offering access to specialized policies that direct insurers often don't provide. Through partnerships with 16+ carriers (including Travelers, CNA, Hiscox and Markel) Tuscaloosa consultants and Huntsville tech firms find coverage for high-risk professions, cyber liability needs and unique business models that single insurers might reject.
The broker model lets you compare policy features, not just prices, in one 10-minute application. You'll pay $78 monthly ($930 annually), slightly above the $77 state average, though claims processing scores lower since underwriting carriers handle claims directly. Travelers' A++ Superior rating backs all policies.
Average Cost of Professional Liability Insurance in Alabama
Professional liability insurance costs in Alabama vary across industries. Home-based businesses pay the lowest rates, around $37 per month, while mortgage brokers pay the highest, approximately $166 per month. Use the filtering tool below to find specific rates for your industry and get accurate pricing for your business needs.
Data filtered by:
Select
| Accountants | $148 | $1,780 |
| Ad Agency | $96 | $1,150 |
| Auto Repair | $82 | $981 |
| Automotive | $76 | $907 |
| Bakery | $52 | $623 |
| Barber | $42 | $505 |
| Beauty Salon | $49 | $589 |
| Bounce House | $57 | $686 |
| Candle | $41 | $497 |
| Cannabis | $119 | $1,426 |
| Catering | $78 | $939 |
| Cleaning | $53 | $642 |
| Coffee Shop | $60 | $717 |
| Computer Programming | $102 | $1,230 |
| Computer Repair | $62 | $745 |
| Construction | $75 | $895 |
| Consulting | $107 | $1,279 |
| Contractor | $63 | $758 |
| Courier | $48 | $581 |
| DJ | $44 | $534 |
| Daycare | $107 | $1,278 |
| Dental | $83 | $993 |
| Dog Grooming | $54 | $654 |
| Drone | $103 | $1,240 |
| Ecommerce | $61 | $736 |
| Electrical | $63 | $757 |
| Engineering | $102 | $1,219 |
| Excavation | $65 | $785 |
| Florist | $37 | $444 |
| Food | $109 | $1,304 |
| Food Truck | $58 | $697 |
| Funeral Home | $80 | $958 |
| Gardening | $40 | $478 |
| HVAC | $80 | $959 |
| Handyman | $53 | $636 |
| Home-based business | $37 | $439 |
| Hospitality | $72 | $865 |
| Janitorial | $49 | $586 |
| Jewelry | $61 | $732 |
| Junk Removal | $66 | $794 |
| Lawn/Landscaping | $50 | $599 |
| Lawyers | $144 | $1,722 |
| Manufacturing | $59 | $704 |
| Marine | $86 | $1,027 |
| Massage | $103 | $1,239 |
| Mortgage Broker | $166 | $1,990 |
| Moving | $82 | $986 |
| Nonprofit | $49 | $590 |
| Painting | $63 | $755 |
| Party Rental | $55 | $662 |
| Personal Training | $69 | $833 |
| Pest Control | $93 | $1,119 |
| Pet | $45 | $540 |
| Pharmacy | $57 | $678 |
| Photography | $62 | $749 |
| Physical Therapy | $93 | $1,116 |
| Plumbing | $86 | $1,037 |
| Pressure Washing | $57 | $685 |
| Real Estate | $122 | $1,466 |
| Restaurant | $82 | $981 |
| Retail | $54 | $651 |
| Roofing | $95 | $1,144 |
| Security | $98 | $1,178 |
| Snack Bars | $47 | $570 |
| Software | $94 | $1,128 |
| Spa/Wellness | $109 | $1,306 |
| Speech Therapist | $98 | $1,176 |
| Startup | $70 | $838 |
| Tech/IT | $95 | $1,141 |
| Transportation | $94 | $1,125 |
| Travel | $96 | $1,152 |
| Tree Service | $74 | $886 |
| Trucking | $108 | $1,294 |
| Tutoring | $60 | $719 |
| Veterinary | $115 | $1,380 |
| Wedding Planning | $76 | $916 |
| Welding | $78 | $932 |
| Wholesale | $62 | $742 |
| Window Cleaning | $63 | $752 |
How Did We Determine These Alabama Professional Liability Insurance Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
What Does Alabama Professional Liability Insurance Cover?
Professional liability insurance in Alabama protects your business when clients claim you made mistakes or failed to deliver promised services. Professional liability insurance covers the costs of defending these claims and any damages you might owe. It also pays for legal fees that can quickly add up during disputes.
This coverage goes by several names:
- Errors and omissions insurance (E&O)
- Malpractice insurance (used mainly in health care and law)
- Professional indemnity insurance
How Much Professional Liability Insurance Do I Need in Alabama?
Alabama state law doesn't mandate professional liability coverage for most businesses, including physicians and attorneys. However, contracts, facility credentials and client agreements often require it. Standard coverage amounts are $1 million per occurrence and $2 million aggregate. Health care facilities set higher requirements at $1 million per occurrence and $3 million aggregate for medical professionals seeking hospital privileges or credentialing.
Who Needs Professional Liability Insurance in Alabama?
Businesses providing professional services or working under client contracts should consider professional liability insurance in Alabama. These industries face significant negligence exposure.
Tech Professionals
Alabama's tech sector spans Huntsville's aerospace software development to Birmingham's cybersecurity industry, creating liability exposure for IT consultants and developers. Tech E&O insurance covers claims involving data breaches, system failures or project delays that cause client financial losses.
Engineering Consultants
The state's aerospace and automotive manufacturing industries rely on engineers who provide technical guidance on complex projects. Design errors or specification mistakes can result in costly litigation, making professional liability coverage essential for engineering consultants.
Health Care Professionals
Alabama doesn't require physicians to carry malpractice insurance, but hospitals mandate coverage before granting privileges. Medical professionals should carry at least $1 million per occurrence to meet credentialing requirements and protect against patient claims.
Financial and Consulting Professionals
Financial advisors and business consultants provide guidance that directly impacts client investments and decisions. Coverage protects against claims of negligent advice or errors in financial analysis that result in client losses.
Construction Contractors
Alabama's $7 billion in annual capital investment drives demand for contractors who must meet client insurance requirements on commercial projects. Professional liability coverage protects against claims of faulty design recommendations or failure to meet specifications.
How to Get the Best Professional Liability Insurance in Alabama
Our step-by-step guide walks you through how to get business insurance in Alabama that matches your professional liability needs and budget.
- 1Assess your professional liability insurance coverage needs
Start by evaluating your business risks and any client contract requirements you must satisfy. A Huntsville aerospace consultant working on defense contracts needs different coverage than a Mobile maritime consultant serving shipping companies.
- 2Work with a local agent
Find an agent who understands Alabama's business landscape and how business insurance costs vary by location and industry. Local agents can explain whether your Birmingham financial practice needs different coverage than similar businesses in Montgomery's government contracting environment.
- 3Get quotes and compare coverage details
Request quotes from at least three insurers, comparing both affordable business insurance rates and policy terms like exclusions and deductibles. When evaluating $1 million liability policies, examine coverage differences rather than focusing solely on premium costs.
- 4Research the best providers
Look beyond price when researching business insurance in Alabama. Find insurers with strong AM Best financial ratings, solid claims handling and experience serving your industry.
- 5Consider bundling discounts
Many Alabama insurers offer better premiums when you combine professional liability with general liability, business owner's policy or other types of coverage. A Birmingham engineering firm might save 15% by bundling its professional and general liability coverage.
- 6Don't let your coverage lapse
Professional liability policies protect you only from claims filed while your policy is active, even if the work happened years earlier. When switching carriers, ensure the new policy covers prior acts or purchase tail coverage (extended reporting) from your previous insurer.
Get Alabama Professional Liability Insurance Quotes
MoneyGeek can match you with professional liability insurance coverage in Alabama from top providers for your industry. Use our tool below to find your best company match and receive tailored quotes for your business.
Get Matched to the Best AL Professional Liability Insurer for You
Select your industry and state to get a customized AL professional liability insurer match and get tailored quotes.
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Alabama Professional Liability: Bottom Line
Choosing the right professional liability insurance in Alabama comes down to understanding your business risks and selecting the right provider. ERGO NEXT earns our top rating, but your industry, client contracts and budget should guide your final decision. Start by assessing your needs, then work with a local agent to compare options and secure coverage that financially protects your business.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.