Small Business Professional Liability Insurance

Small business professional liability insurance protects companies from claims of negligence, mistakes, or inadequate work that cause financial loss to clients. It’s essential for consultants, freelancers, and service-based businesses to safeguard against lawsuits and financial risks.

Running a small business comes with both opportunities and risks. While offering professional services, even the smallest mistake can lead to client dissatisfaction and potential lawsuits. Professional liability insurance—often called errors and omissions (E&O) insurance—provides a safety net that shields businesses from these risks.

What Is Professional Liability Insurance?

Professional liability insurance covers claims related to errors, negligence, misrepresentation, or failure to deliver services as promised. For small businesses, this is particularly important because a single lawsuit can threaten financial stability.

Why Small Businesses Need It

• Legal protection: Covers attorney fees, court costs, and settlements.

• Client trust: Many clients require proof of coverage before signing contracts.

• Peace of mind: Protects you from the unexpected so you can focus on growth.

Who Should Have It?

Small businesses that provide advice, expertise, or services—including consultants, marketing agencies, accountants, designers, and IT professionals—should carry professional liability insurance.

Cost Factors

The cost depends on industry, business size, claims history, and coverage limits. Most small businesses can secure policies at affordable monthly rates.

Professional liability insurance is not just a safeguard—it’s a smart investment in your business’s reputation and longevity. Protecting your small business today ensures you’re ready for tomorrow’s opportunities.