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Business Insurance for Professional Services

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Top insurance policies for professional service businesses

Business insurance helps pay for legal costs if a client is dissatisfied with the quality of your professional service. It also covers fire, theft, and injuries. These insurance policies protect against the most common risks in the industry.

Business owner's policy

Business owner’s policy icon

A business owner's policy, or BOP, combines general liability coverage and commercial property insurance at a discount. Small business owners are often eligible for this bundle.

  • Slip-and-fall injuries
  • Client property damage
  • Business property damage

General liability insurance

General liability insurance icon

A general liability insurance policy defends against third-party lawsuits, such as a client who trips on a loose rug at your office and suffers an injury. It's often required for a commercial lease.

  • Client bodily injuries
  • Damage to a client's property
  • Copyright infringement

Professional liability insurance

Professional liability insurance icon

This policy covers legal fees related to claims of negligence, such as a mistake that caused a client to lose money. It's also referred to as errors and omissions insurance or E&O insurance.

  • Late or undelivered services
  • Advice that caused financial loss
  • Mistakes and oversights

Workers' comp insurance

Workers’ compensation insurance icon

Workers' compensation covers medical bills related to work, which health insurance won't cover. Most states require it for employees, but sole proprietors can also benefit from this coverage.

  • Medical costs from work injuries
  • Disability benefits
  • Lawsuits from injured employees

Commercial auto insurance

Commercial auto insurance icon

Almost every state requires commercial auto insurance for business-owned vehicles. It helps pay for legal defense costs if your vehicle is involved in an accident.

  • Auto accident lawsuits
  • Vehicle damage, such as vandalism
  • Theft of a company vehicle

Cyber insurance

Cyber liability insurance icon

This policy helps professional service businesses recover from costly cyberattacks and data breaches. It's also called cyber liability insurance or cybersecurity insurance.

  • Data breach investigations
  • Customer notification costs
  • Cyberextortion demands

Professional services business insurance costs

A service professional calculating the cost of business insurance.

From our customer data, here's a quick look at average costs for small businesses that offer professional services:

General liability: $29 per month
Business owner's policy: $47 per month
Workers' compensation: $49 per month

Factors that can influence your premiums include:

  • Your profession, such as event planner, recruiter, lawyer, travel agent, or consultant
  • Number of employees
  • Value of your business property
  • Types of insurance purchased
  • Coverage limits and deductibles
  • Claims history

How do I get professional services business insurance?

TechInsurance helps you get insured quickly so you can secure contracts, comply with state laws, and protect your business against costly lawsuits and accidents. We work only with top-rated insurance companies to secure the best possible coverage for your professional service business.

You can get the right insurance in three simple steps:

Our licensed insurance agents will help you find coverage that matches your business needs and your budget. Gain peace of mind with advice from expert agents and policies from the leading carriers in the nation.

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Common questions about business insurance for professional services

Find answers to your questions about professional services insurance.

Do lawyers and other types of service professionals need to have insurance?

Yes, it's always a good idea to carry insurance—and in some cases, it's required. Specifically, lawyers and other professionals may need business insurance in these situations:

Business insurance is a crucial part of risk management. Without it, a liability claim from an accident could financially devastate your business. Clients may also choose to work with a business that has insurance over one that's uninsured.

What other types of coverage should professional service businesses have?

Depending on your type of business, you may need protection for other risks and liabilities. Professional service business owners should also consider:

  • Business interruption insurance: Often included in a business owner's policy, this coverage helps your business recover from a temporary closure due to a fire or storm. For coverage beyond your normal operating expenses, look to extra expense coverage.
  • Employment practices liability insurance (EPLI): This policy helps pay for legal fees when an employee sues over a violation of their rights, such as wrongful termination, discrimination, or harassment.
  • Directors and officers insurance (D&O): If an officer or board member is sued over a decision they made on behalf of your company, D&O insurance can cover their legal costs.
  • Commercial crime insurance: Fidelity bonds and other types of commercial crime insurance can protect your business and your clients in the event of employee theft.
  • Surety bonds: A surety bond acts as a financial guarantee that your company will fulfill the terms of its contract with a client.
  • Equipment breakdown coverage: This policy covers financial losses when a piece of specialized machinery or equipment that you depend on suffers a failure.
  • Commercial umbrella insurance: When your general liability, commercial auto, or employer's liability insurance reaches its limit on a claim, umbrella insurance activates to provide additional coverage.

Another common protection for professional service businesses is a hold harmless agreement, also called an indemnity agreement. In short, it's a contract in which those who work with you agree they will refrain from suing your business in certain situations.

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