Best Professional Liability Insurance for Consultants in 2024

Excelling in both affordability and overall quality, Next offers the best and cheapest professional liability insurance for consultants. For LLCs with 20 employees, the average cost is $207 per month, while sole proprietors without employees can expect a cost of just $35 monthly. Professional liability insurance is a key safety net, protecting consultants against potential lawsuits related to professional advice or services, and Next is our standout choice for coverage.

Next stands out as the best professional liability insurer for consultants. Next earned a MoneyGeek score of 97 out of 100, the highest on our list, based on its affordability, strong customer satisfaction and swift quote time. In the table below, you'll find the MoneyGeek scores and costs for all of the companies on our list for comparison.

Next is the cheapest insurer overall for consultants, with an average monthly cost of $207 for LLCs with 20 employees and $35 for sole proprietors. Our affordability score combines costs for both sole proprietors and LLCs, placing Next at the top.

The Hartford shines as the premier professional liability insurer for consultants operating as LLCs with 20 employees. Earning a MoneyGeek score of 99 out of 100, it provides top-tier coverage for these entities. With an average monthly cost of $282, The Hartford's comprehensive and reliable insurance offerings make it the standout choice for larger consulting firms seeking peace of mind and financial protection.

Next is the best professional liability insurer for consultants operating as sole proprietors without employees. With a MoneyGeek score of 97 out of 100 for such business structures, it provides outstanding coverage at an affordable rate. At an average monthly cost of just $35, Next offers sole proprietor consultants a financially sound and secure insurance solution, making it the best choice in this category.

Thimble takes the lead for consultants seeking fast, online insurance quotes. Clocking in with an average quote time of just 55 seconds, Thimble is unrivaled in its speed among the professional liability insurers we've analyzed.

The average monthly cost of professional liability insurance for consultants is $942.12 for LLCs with 20 employees and $92.67 for sole proprietors without employees. One of the critical determinants of the cost of professional liability insurance for consultants is the employee count. As the number of employees increases, so does the potential for claims related to professional errors or negligence, which in turn drives up the cost of insurance.

Other factors that impact the cost of professional liability insurance include:

• Industry and services: The nature of the consultant's industry and the specific services they provide can influence insurance costs. Industries or services associated with higher risk often result in higher premiums.
• Claims history: If a consultant or their firm has a history of professional liability claims, insurers may consider them a higher risk, leading to increased premiums.
• Coverage limits and deductibles: Higher coverage limits and lower deductibles can provide greater protection, but they also increase the cost of insurance.
• Geographical location: The consultant's location can impact insurance costs, as legal costs and risk profiles can vary regionally.

Understanding these factors can help consultants effectively manage their professional liability insurance costs while ensuring they have adequate protection.

Apart from professional liability insurance, consultants may need several other types of business insurance to cover various risks associated with their operations:

• General liability insurance: This type of insurance protects against claims of bodily injury or property damage arising from your business operations. For example, if a client gets injured at your office, general liability insurance can cover legal costs and medical expenses.
• Workers' compensation insurance: If your consultancy employs staff, you'll likely need workers' compensation insurance. It covers medical costs and lost wages if an employee gets injured or falls ill due to work-related activities.
• Cyber liability insurance: With increasing reliance on digital tools and data, consultants need to safeguard against cyber threats. Cyber liability insurance covers losses due to data breaches or cyberattacks.
• Commercial property insurance: If you own or lease office space, commercial property insurance is essential. It protects your physical assets like office equipment, furniture and buildings against damage or losses from fires, storms or theft.
• Business interruption insurance: This covers loss of income if your business operations are disrupted due to a covered peril, such as a natural disaster.

Choosing the right combination of these insurance options can provide a comprehensive protection plan for consultants, offering financial stability and peace of mind.

Understanding the nuances of professional liability insurance for consultants can be complex. We addressed some key questions to help you find the best and most cost-effective insurance providers, comprehend the coverage scope and clearly understand associated costs.