Professional Liability Insurance in Texas

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What can be covered by Errors and Omissions insurance in Texas?

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.

Jump ahead to learn:

Is Professional Liability insurance in Texas required?
How much does Errors and Omissions insurance in Texas cost?
What does Texas Professional Liability insurance cover?
What types of businesses could benefit from Texas Professional Liability?
Are Professional Liability insurance and E&O insurance the same?
How NEXT helps protect Texas business owners

Is Professional Liability insurance in Texas required?

Texas professional liability insurance coverage, also called Texas E&O insurance (errors and omissions), may be necessary for:

Professional licenses and permits. Depending on your industry, the city or town where you work may require professional liability insurance for professional certifications.
Getting more work. Some clients, including state and local governments, may require a certificate of insurance (COI) before they’ll work with you, especially on high-cost projects. This proof of insurance may mandate professional liability or E&O.
Financial protection. Texas small businesses that hold a professional liability policy could get financial help if they’re accused of negligence, misrepresentation or if they make a professional mistake that costs clients money.

According to the Texas Department of Insurance, these industries must have professional liability insurance to get a license:

Home day care centers
HVAC installers
Plumbers
Real estate inspectors

Though E&O insurance is not required for all businesses, it offers a layer of protection that could be an asset to any business owner.

How much does Errors and Omissions insurance in Texas cost?

The price you’ll pay for a Texas professional liability insurance policy varies depending on many factors, including:

The type of work that you do
Your work experience
The location(s) where you operate
How many employees you have

How high you set your insurance deductibles, policy limits and coverage limits
Your insurance claims history

NEXT makes it fast and affordable to get TX professional liability insurance in about 10 minutes.

Learn more about professional liability insurance costs.

What does Texas Professional Liability insurance cover?

A Texas E&O insurance policy can help cover some business costs if:

You or one of your employees make a professional mistake that costs a client money.
Your business faces legal accusations of professional negligence such as wrongdoing or inaction that causes a client financial harm.
You make a mistake, such as a missed deadline for a client, that results in their financial peril.
Your business is accused of misrepresentation of services.

Here are some examples of how your insurance company could help with risk management:

A Houston-based financial advisor accidentally deposits a client’s funds into the wrong investment account, resulting in delayed access and missed returns. The client files a claim for financial loss due to the error. Professional liability insurance could help cover legal defense costs and damages related to the alleged negligence.**
A client claims an insurance agent in Dallas failed to clearly explain that flood coverage was not included in their commercial property policy. The client sues after experiencing flood damage. Errors and omissions insurance could help cover legal defense costs and a potential settlement.
A client in Austin sues their architect over alleged design flaws in a boutique hotel renovation. They claim improper drainage led to water damage in several guest rooms. Professional liability insurance could help cover litigation expenses and costs to correct the design.

What types of businesses could benefit from Texas Professional Liability?

Many businesses across multiple industries could benefit from a professional liability/E&O insurance policy in Texas.

The following professionals typically get liability coverage:

Home day care centers
HVAC installers
Plumbers
Real estate inspectors
Real estate agents
Insurance agents
Consultants
Accountants, tax preparers and financial services
Engineers
Architects
Construction/contractors
Most professional services

Are Professional Liability insurance and E&O insurance the same?

Professional liability insurance and errors and omissions insurance, or E&O, refer to the same business insurance coverage. The names can be used interchangeably. But depending on your industry, one term may be favored over the other.

E&O is usually used by:

Professional liability insurance is usually used by:

How NEXT helps protect Texas business owners

NEXT makes it fast, easy and affordable to protect your TX business — and you can do it all online.

We’ll ask a few questions about your business and give you a quote. You select your coverage options and buy your policy in about 10 minutes.
Your certificate of insurance (COI) will be available immediately at no extra cost, and you can access your policy 24/7 via web or mobile app.
If you have questions, our licensed, U.S.-based insurance professionals are ready to help.

Start a free quote with NEXT.

Get Professional Liability/E&O coverage in about 10 minutes, 100% online.

Other important business insurance policies in Texas

Professional liability or E&O insurance is just one type of Texas business insurance. Additional risks require different types of insurance for protection.

Texas businesses also consider:

Texas General Liability insurance

General liability coverage in Texas can help to protect your business against common accidents. This policy can help pay for damages if your business is accused of accidentally causing bodily injury to a non-employee or property damage.

Workers’ Compensation insurance in Texas

If an employee becomes sick or hurt at work, Texas workers’ comp could help pay for lost earnings and medical expenses. While Texas is one of the few states that does not require workers’ comp, its financial protection can still be beneficial.

Commercial Auto insurance

If you or an employee gets into an accident while driving a work vehicle, commercial auto insurance could help pay for medical costs or damage to property.

Commercial Property insurance

Texas businesses can protect their physical business assets, such as buildings, inventory, equipment and furnishings, with commercial property insurance. If your business property is damaged from a covered event, you could get help to pay for repairs or replacement.

BOP insurance (Business Owners’ Policy)

A Business Owner’s Policy, also called a BOP insurance policy, combines both general liability and commercial property insurance into a single, often more cost-efficient package for Texas business owners.

Resources for Texas business owners

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NEXT Insurance reviews

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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.

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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.

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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!

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