Get Your Free Quote
Protecting Your Business from Costly Claims
An IT consultant in Melville called us after a client threatened to sue him for $75,000. He’d been hired to set up a new database system, but the migration caused data loss that shut down the client’s operations for two days. The client claimed his mistake cost them tens of thousands in lost revenue. He didn’t have professional liability insurance and was looking at potentially losing his house to pay for a lawyer and a settlement.
We got him covered immediately for future work, but that one gap in coverage almost destroyed his business and his personal finances. Professional liability insurance isn’t optional if you provide advice, services, or expertise that people pay you for – it’s the safety net between one mistake and financial ruin.
First Heritage Insurance has protected New York professionals across dozens of industries since 2003. Whether you’re a consultant, contractor, accountant, real estate agent, or run any kind of service-based business, we’ll find you professional liability coverage that fits your specific risks and budget.
Understanding Professional Liability Insurance from Your Insurance Agency
Working with an Insurance Agency that understands professional risks means getting coverage that actually matches what you do everyday. Generic business insurance agents might not know the difference between what a software developer needs versus what a marketing consultant needs, but we do this constantly.
Professional liability insurance – also called errors and omissions insurance or E&O – protects you when clients claim your work caused them financial harm. This is different from general liability insurance, which covers physical injuries and property damage. Professional liability covers mistakes, oversights, negligence, and failure to deliver promised services.
Here’s what professional liability insurance covers:
Defense costs add up incredibly fast even if you did nothing wrong. Attorney fees, court costs, expert witnesses, and depositions can easily hit $50,000 to $100,000 before a case even goes to trial. Your professional liability policy pays these costs regardless of whether you’re found liable.
Settlement and judgment payments get covered up to your policy limits if you lose the case or settle. If a court rules you’re liable for $200,000 and you have a $1 million policy, your insurance pays it. Without coverage, you’re writing that check yourself or filing bankruptcy.
Damage to client relationships happens even when you’re not technically at fault. Professional liability insurance can cover costs associated with fixing problems, redoing work, or making clients whole even when there’s no lawsuit involved.
Lost income claims from clients who say your mistake cost them money are the most common professional liability claims. A consultant gives bad advice that leads to a poor business decision. A contractor’s error delays a project and costs the client rental income. An accountant’s mistake results in IRS penalties. These are all covered scenarios.
Professional Liability Coverage from the Right Insurance Company
The right Insurance Company for professional liability understands your specific industry risks. Not all carriers write coverage for all professions, and the ones that do often have very different pricing and coverage terms.
We work with carriers who specialize in professional liability across multiple industries. That means when you need to file a claim, you’re dealing with adjusters who’ve handled similar cases before and understand your profession.
Who needs professional liability insurance:
Consultants and advisors of all types need this coverage. Business consultants, marketing advisors, HR consultants, financial advisors, and anyone who gets paid for their expertise and recommendations should carry professional liability insurance. One bad recommendation can lead to six-figure claims.
Contractors and construction professionals face constant liability exposure. General contractors, electricians, plumbers, HVAC techs, and specialty contractors all need professional liability to cover design errors, faulty workmanship claims, and project delays. This supplements general liability coverage for construction-specific risks.
IT and technology professionals are frequent targets for professional liability claims. Software developers, IT consultants, web designers, cybersecurity experts, and tech support providers all face risks from system failures, data loss, security breaches, and missed deadlines.
Real estate professionals operate under strict regulations with significant liability exposure. Real estate agents, brokers, appraisers, and property managers need professional liability coverage for errors in contracts, disclosure issues, valuation mistakes, and fair housing violations.
Healthcare providers beyond doctors need this coverage too. Physical therapists, mental health counselors, nutritionists, home health aides, and other healthcare adjacent professionals should carry professional liability insurance for malpractice protection.
Accountants and financial professionals face enormous liability. CPAs, bookkeepers, tax preparers, and financial planners can be held liable for calculation errors, missed deductions, bad tax advice, and financial planning mistakes that cost clients money.
Trusted by Business Owners and Families Alike
4.9 ratings of 50k+ Long Island insurance clients
Jamira Minton
Home Insurance
I was referred by my best friend , and once I called in I received good customer service. I was assigned to Brandon as my agent and he was really great . He was well informative and served me with great service. I will always have him by my side and I am happy I called and switch my insurance with them .
Anthony Wofford
Auto Insurance
Kyle was my guy. Made my experience absolutely great and I’m happy to have him as my contact going forward. I was looking into new insurance quotes that saves me hundreds per month. It was an absolute no-brainer. He was quick, thorough, didn’t waste my time, made the process smooth and very friendly. Highly recommend!!
Christian raphael
Business Insurance
My guy Brandon Blood is not only professional but he a very real honest person looking out for the best for his clients I been in communication with him for years for any of my insurance needs and he always has the same attitude and is always down to help. Thank you sir!
Partners & Affiliations
We partner with some of the most respected insurance carriers in the industry to bring you reliable coverage and peace of mind.
Getting Professional Liability Through an Experienced Insurance Agency
Our Insurance Agency has placed professional liability coverage for hundreds of New York businesses across virtually every industry. We know which carriers offer the best coverage for your specific profession and which ones to avoid.
One of our clients runs a marketing consulting firm in Manhattan. She’d been operating for three years without professional liability insurance because she thought her general liability policy covered everything. When a client sued her claiming a failed campaign cost them $150,000 in lost sales, she found out general liability doesn’t cover professional services at all. We got her covered after that claim, but she’s still dealing with that lawsuit out of pocket.
Here’s what affects your professional liability insurance costs:
Your profession and industry create your baseline risk. High-risk professions like financial advisors and healthcare providers pay more than low-risk professions like graphic designers or writers. The potential for large claims drives pricing.
Your revenue and project size matter significantly. A consultant billing $50,000 per year faces different risks than one billing $500,000 annually. Larger projects and higher revenues mean higher potential claims, which increases premiums.
Your coverage limits and deductible choice change your costs. Most professionals carry $1 million in coverage, but some industries require $2 million or more. Higher limits cost more. Your deductible typically ranges from $1,000 to $10,000 – higher deductibles lower your premium.
Your claims history follows you forever in professional liability. Even one paid claim can increase your rates significantly or make you difficult to insure. Some carriers won’t touch professionals with multiple claims. Clean history gets you the best rates.
Years in business and experience level affect pricing too. Brand new professionals pay more than established ones because they’re statistically more likely to make costly mistakes. After five years with no claims, your rates typically improve.
- Local Expertise, Personalized Coverage
- Fast Turnaround for Fleet & Business Clients
- Affordable Rates with Top Carriers
- Dedicated Agent Support
Get Your Professional Liability Insurance Quote
Don’t operate without professional liability coverage if you provide any kind of professional services. One claim can wipe out years of profits or force you into bankruptcy. Call us at 631-659-0189 or request a quote online.
We’ll ask about your profession, your revenue, the types of services you provide, and your claims history. Then we’ll pull quotes from multiple carriers who specialize in your industry. Most quotes take 20-30 minutes to prepare.
First Heritage Insurance serves professionals throughout New York, Connecticut, and beyond. We work with carriers who understand professional liability across dozens of industries. Whether you’re just starting out or you’ve been in business for decades, we’ll find you coverage that protects what you’ve built.
FAQs
How much does professional liability insurance cost?
Most professionals pay between $500 and $3,000 per year for $1 million in coverage, depending on their industry and revenue. Low-risk professions like writers or graphic designers might pay $500-$800 annually. High-risk professions like financial advisors or architects might pay $2,000-$5,000 or more. We’ll get you specific pricing based on your exact situation.
What's the difference between professional liability and general liability?
General liability covers bodily injury and property damage – like a client slipping and falling in your office. Professional liability covers financial harm from your services, advice, or work – like giving bad recommendations that cost a client money. Most businesses need both types of coverage for complete protection.
Do I need professional liability if I have a contract?
Yes – contracts help but don’t eliminate your liability exposure. Even if your contract has liability limitations or disclaimers, clients can still sue you. Many contracts actually require you to carry professional liability insurance. The coverage protects you regardless of what your contracts say.
How much coverage do I need?
Most professionals start with $1 million in coverage. If you work with large clients or on big projects, consider $2 million. Some industries like healthcare or financial services often need higher limits. We’ll recommend coverage amounts based on your specific risks, typical project sizes, and any client requirements you need to meet.
Does professional liability cover past work?
It depends on whether you have “claims-made” or “occurrence” coverage. Most professional liability policies are claims-made, meaning the policy in effect when the claim is filed is the one that responds. If you cancel your policy, you need “tail coverage” to cover claims from past work. We explain all this when setting up your policy.
Can I get professional liability insurance as an independent contractor?
Absolutely – independent contractors and freelancers need this coverage just as much as established businesses. Many clients require proof of professional liability insurance before they’ll hire you. We insure solo consultants, freelancers, and independent contractors across all industries.
What if a client refuses to pay and I sue them?
Professional liability insurance doesn’t cover you suing clients for non-payment – that’s not what the coverage is for. It only covers claims made against you for professional negligence or errors. For contract disputes where you’re pursuing payment, you’d need to handle that separately or potentially through business legal expense coverage.