Professional Liability Insurance for a Sole Proprietorship

Get Great Coverage in Minutes
All it takes is a few clicks.

Protect Your Sole Proprietorship With Professional Liability Insurance

professional liability insurance for sole proprietorship As a sole proprietor, you’re the owner of your business. This means you’re also personally liable for any business debts or obligations. Unlike other business structures, like a limited liability company (LLC), your personal and business assets aren’t separated. So, it’s important to make sure you have the right types of business insurance coverage to help protect you and your company.
 
One important coverage you may want to consider is professional liability insurance for sole proprietorships. Professional liability insurance, or errors and omissions insurance, helps protect your business in case you get sued for mistakes in the professional services you’ve provided. Even if you don’t make a mistake, your customers or clients can still sue you.
 
Learn more about this type of sole proprietor insurance, what it helps cover and how it can help you.
 

What Does Professional Liability Insurance Cover for Sole Proprietorships?

Professional liability insurance for sole proprietorships can help cover claims of:
 
  • Negligence
  • Inaccurate advice
  • Misrepresentation
  • Failure to protect personally identifiable information (PII)
If your business gets sued, this insurance can help pay for your:
 
  • Legal costs
  • Defense fees
  • Lost income if you have to attend a trial or deposition
Be aware that professional liability insurance doesn’t cover all business liabilities. You’ll likely need other types of small business insurance to get comprehensive coverage.
 
Professional liability insurance won’t help your business with claims of:
 
Bodily injury or property damage, so you’ll need general liability insurance to help cover these kinds of claims.
 
Employee injuries, which a workers’ compensation insurance policy can help with.
 
Business interruption due to covered property damage. A business income insurance policy can help cover this type of claim.
 

What Professional Liability Does a Sole Proprietor Have?

If you’re the sole proprietor, it means you’re personally liable for your business. That means you’re responsible for all claims, debts and duties. With a sole proprietorship, there’s no separation between business and personal assets. That’s why it’s important to have professional liability insurance.
 
Let’s say you don’t have coverage and your client sues you for a mistake in the professional services you’ve provided. You’ll have to pay for your defense costs and any judgments or settlements. And if you can’t afford it, your personal assets will be at risk.
 

How Much Is Professional Liability Insurance for a Sole Proprietor?

Every business is different and has unique needs. So, professional liability insurance costs vary. You may pay between $150 and over $2,500 a year for a professional liability policy. An insurance company uses different factors to determine your rate. These factors can include:
 
  • Years of business experience
  • Claims history
  • Location
The best way to find out how much this insurance will cost your business is to get a quote.
 

Does a Sole Proprietor Need Professional Liability Insurance?

Does a sole proprietor need liability insurance It’s important for sole proprietors that provide professional services or advice to have professional liability insurance. Some types of businesses that may want to consider this coverage include:
 
Get a professional liability insurance quote and see how we can help protect your business.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
 
* Customer reviews are collected and tabulated by The Hartford and not representative of all customers.