Professional Liability Insurance in Arizona

You can save up to 25% in discounts.*

Business mistakes and accusations of negligence can be costly without the right insurance. Professional liability insurance can help cover:

Business errors

A client or customer accuses you of making a professional mistake that costs them money.

Claims of negligence

Someone claims your inaction or wrongdoing caused a financial loss or personal harm.

Misrepresentation

Someone accuses you of providing inaccurate information with your services.

Legal defense costs

You need to hire a lawyer to defend your business after you are accused of making a professional mistake.

What is Professional Liability insurance coverage?

With professional liability insurance, Arizona business owners and their employees if they are held responsible for business mistakes or face accusations of negligence.

Professional liability insurance can help cover:

Professional mistakes that cause another person or business financial harm
Accusations of inaction, wrongdoing or professional negligence
Misrepresentation of your services

Businesses may be able to submit a professional liability insurance claim if they make a professional mistake or if a client just claims that they did. Here are some situations where this type of insurance could help:

A client sues a Tempe financial advisor for using copyrighted material in their advertisements. A professional liability insurance policy can help the advisor cover the costs to defend their business or fix the mistake.
A Phoenix insurance agent has to pay a lawyer to defend their case in a disciplinary hearing by a professional review board. Professional liability insurance in Phoenix could help cover legal fees and related costs.

What is the difference between Professional Liability and E&O insurance?

Another term that describes professional liability insurance is errors and omissions insurance, or E&O.

Professional liability and E&O are often used interchangeably but typically refer to the same coverage in Arizona. Errors and omissions insurance is used mainly by real estate and insurance professionals, and there is also a contractor’s E&O for construction professionals.

Most other professionals, such as accountants, engineers, architects and lawyers, call this insurance coverage professional liability.

Is Professional Liability insurance required in Arizona?

Most businesses in Arizona are not required to carry professional liability or errors and omissions insurance. Arizona business owners may need this coverage to meet individual industry standards, however.

For example, if you work on state or local government contracts, you may need to have E&O insurance. Arizona healthcare workers may also need malpractice insurance, a type of professional liability coverage, to secure a job.

Many Arizona business owners get professional liability insurance, even when it’s not required, for the following reasons:

Financial protection

Small businesses in Arizona may be better financially protected if they make a professional mistake or face accusations of negligence.

Work contracts

Your clients may ask for proof of professional liability coverage in the form of a certificate of insurance before agreeing to work with you. With this coverage, you may get larger, more high-value contracts.

Licenses and permits

Depending on your industry and where you work, you may need to have professional liability insurance to obtain or renew certain business certifications or licenses.

For example, while the state does not require notary E&O insurance, Arizona notaries are required to purchase a $5,000 surety bond, and the National Notary Association recommends adding errors and omissions insurance.¹

What types of businesses might need Professional Liability in Arizona?

Professional liability insurance provides common coverage for professional services,

including consulting, accounting and engineering.

Businesses in many different industries can benefit from this Arizona business insurance.

Nearly all professionals risk making mistakes that could cause financial harm to a client or potentially face an accusation of negligence or wrongdoing. With professional liability insurance, you could get help to resolve these issues and protect your reputation.

For instance, an engineer in Scottsdale wracks up legal expenses while contesting a safety inspection violation. In that case, their professional liability insurance could help cover the legal fees needed to defend themselves and their business.

Say a Tuscon architect’s client alleges they made a mistake in their designs that led to the collapse of a stairwell and sues for causing injuries. Professional liability insurance could help cover defense costs.

How much is Professional Liability insurance in Arizona?

Costs vary for Arizona professional liability insurance based on several factors, including:

The industry you are in
Where you do business
The number of people you employ
Your work experience
Your history of past insurance claims
How high you set your policy limits

NEXT makes it simple to get affordable Arizona professional liability or E&O insurance online in around 10 minutes. Our monthly premiums cost $45 or less for 52% of our U.S. customers for this type of business insurance**

Learn more about professional liability insurance costs.

How NEXT Insurance helps Arizona businesses

NEXT provides professional liability insurance policies for Arizona small businesses and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

Other types of Arizona business insurance

Errors and omissions or professional liability insurance is just one kind of Arizona business insurance small business owners may need to protect their businesses.

With these options, Arizona businesses can help protect themselves from other common risks:

General Liability insurance

General liability insurance can help protect Arizona business owners financially if they or one of their employees causes an accident that results in a third-party injury or property damage.

Workers’ Compensation insurance

Arizona workers’ compensation insurance can help cover medical expenses and lost wages if an employee is injured on the job. All businesses in Arizona with one or more employees are required by law to have workers’ comp insurance.

Commercial Auto insurance

Commercial auto insurance can help provide important coverage for medical expenses and property damage if you or an employee gets into an accident while driving a company vehicle.

All vehicles in Arizona are required to have minimum auto insurance coverage of $25,000 per person, $50,000 per accident and $15,000 for property damage.²

Commercial Property insurance

Commercial property insurance can help businesses protect physical assets, including commercial buildings, inventory and business equipment. This insurance can help Arizona businesses pay for repairs or replacements for company property damaged by a covered event.

Sources

¹ Arizona Notary Bonds & Insurance

² Minimum Coverage Required for Arizona Drivers

Get customized insurance in Arizona

See what our customers have to say

I am so excited

I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.

Curzella J.

Easiest insurance purchase – EVER!

I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.

Michael W.

Happy small business owner!

I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!

Nicole E.

Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance

Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.

** The cost data presented here are based on NEXT active customers in the U.S. who purchased professional liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.