Best Professional Liability Insurance in California (2025)

The best overall company for professional liability insurance in California is Next, earning a MoneyGeek score of 96. For LLCs with 20 employees, the average monthly cost is $337; for sole proprietors with no employees, it's $39. Next is also the most affordable option in the state.

MoneyGeek has ranked Next as California's top professional liability insurance provider, attributing its ranking to robust affordability scores for 20-employee LLCs and sole proprietors without any staff. The table below details the scores and costs for each company on our list to help you compare insurers.

Next earns the title of the cheapest professional liability insurance in California with average monthly costs of $337 for LLCs with 20 employees and $39 for sole proprietors. Despite Thimble offering slightly lower rates for sole proprietors at $31, its significantly higher LLC rates of $1,824 position it as the second-cheapest insurer overall.

Our affordability ranking is based on a combined assessment of sole proprietor and LLC costs, meaning the cheapest overall may not be the least expensive for both categories.

Next ranks as the top choice for sole proprietors with no employees seeking professional liability insurance in California, earning a MoneyGeek score of 96. This ranking is based on its stellar affordability, with an average monthly cost of $39, and strong customer satisfaction ratings. Following closely behind, Thimble secured the second-best position with a score of 95.

Nationwide ranks as California's best professional liability insurance provider for LLCs with 20 employees, earning a MoneyGeek score of 97. This score reflects the company's cheap average monthly premium of $349, high customer satisfaction ratings and comprehensive range of insurance coverages. The Hartford matches Nationwide's score of 97, but its higher monthly cost of $545 positions it in second place. Remember that employee count significantly influences the cost of professional liability insurance; businesses with fewer than 20 employees can anticipate lower costs, while those with a larger workforce should expect to pay more.

Thimble leads the way in California for fast professional liability insurance quotes with an average online quote time of 52 seconds. Speedy online quote processes can minimize downtime and streamline decision-making for business owners, allowing for quick comparisons between providers and plans.

In California, the average monthly cost of professional liability insurance is $693 for LLCs with 20 employees and $98 for sole proprietors without employees. These rates are for a policy with limits set at $1 million per occurrence, $1 million aggregate and a $5,000 deductible. Here’s how to understand the policy limits:

• The per occurrence limit is the maximum amount the insurance company will pay for a single claim.
• The aggregate limit is the maximum amount the insurer will pay out over the policy's term.
• The deductible is the amount the policyholder must pay out of pocket before the insurance coverage starts to apply.

A comparison of California's professional liability insurance costs with rates in other states reveals that California is on the higher end of the scale. California ranks in the top 25% for average monthly rates for LLCs with 20 employees. California's costs are around the middle of the pack for sole proprietors without employees compared to other states.

The table below presents a state-by-state comparison of the average monthly cost of professional liability insurance, highlighting the variations in premiums across the country.

The cost of professional liability insurance in California can change significantly from one business to another. This variation is due to several factors that insurance companies consider when determining premiums. Each factor plays a role in shaping the cost of coverage:

Professional liability insurance, often called malpractice insurance when applied to certain high-risk industries, is not typically a legal requirement for most businesses. However, specific fields like healthcare and law may have distinct considerations.

• Legal malpractice insurance: There isn't a mandate for lawyers in California to have malpractice insurance. But a lawyer who knows or should know that they do not have professional liability insurance must inform their client in writing, according to the California Rules of Professional Conduct. This disclosure should occur early on so that clients are aware of their lawyer's insurance status before formal legal representation begins.
• Medical malpractice insurance: Physicians in California are not legally required to carry malpractice insurance. However, certain hospitals or healthcare facilities might require their visiting providers to have such insurance. Medical professionals may also need malpractice insurance to participate in certain healthcare insurance plans.

Navigating California's professional liability insurance landscape can be complex, with many factors to consider. The questions below cover the top-rated and most affordable providers, the specifics of what professional liability insurance covers and the typical costs associated with these policies in California.