When you are running a business, managing risk is an integral factor in success. That is why you are an industry expert, and you know the ins and outs of your trade or service. Unfortunately, everyone makes mistakes. That is why there's errors and omissions (E&O) insurance.
Finding quality affordable E&O coverage is easy when you shop. One thing to remember is that your errors and omissions insurance cost should fit your budget, yet offer enough coverage.
E&O insurance cost is a vital consideration for a business owner, which is why we've conducted this research and compiled a list of multiple commercial insurance carriers and their average EO insurance cost, so you can have your pick.
When thinking about insurance needs, you might only consider getting general liability coverage for property damage and bodily injury. However, that’s not enough. You also need protection against risks resulting from negligence and errors. And so, decide to get E&O insurance which covers the following perils:
Violation of good faith and fair dealing
Breach of confidence/privacy
Errors and omissions insurance is usually included in tailored insurance products for different businesses. Insurance companies offer two types of errors and omission insurance
A claims-made error and omissions insurance covers incidents you reported to the insurance company during the policy’s effective duration. Here are some examples for you to understand:
You bought a claims-made errors and omissions insurance on January 1, 2022, and it will expire next year. A covered incident happened on February 5, 2022. Since the incident happened within the year your errors and omissions insurance is in effect, the insurance company will cover expenses on your behalf.
You bought a claims-made errors and omissions insurance on January 1, 2022, and it will expire next year on the same date. A covered incident happened on January 2, 2023. You reported what happened to the insurance company. In this case, your claim will be rejected because the covered incident happened after your errors and omissions insurance expired.
On the other hand, occurrence errors and omissions insurance will cover perils that happened during the policy is active or after the policy expires. Compared to its claims-made counterpart, occurrence errors and omissions insurance is a more trusty shield against exposures.
So which should you decide to get? The table below outlines the pros and cons of occurrence errors and omission insurance and claims-made errors and omissions insurance.
|Claims-Made Errors and Omissions Insurance Pros||Claims-Made Errors and Omissions Insurance Cons||Occurence Errors and Omissions Insurance Pros||Occurence Errors and Omissions Insurance Cons|
|Low initial premiums||Pricing might increase based on your claims history||Premiums are fixed||More expensive|
|Easy to predict pricing||Can be a hassle if the carrier terminates the insurance policy||Easier to manage||Amount of coverage offered might be too much for your needs|
|Limits can be increased as exposures become more numerous||Only provides coverage for one year and only covers perils that happen during its effective duration||Covers perils that happened even after it has expired|
Errors and omission insurance covers the financial or economic loss of a client your negligence or mistake caused. On the other hand, general liability insurance takes care of personal injuries or property damage as caused by your business operations to clients, vendors, visitors, and other parties. If you’re purchasing professional liability insurance, it’s smart to get general liability insurance also to have comprehensive protection against claims from third parties.
Wonderful question. Actually, before wondering about errors and omissions insurance cost. You have to think about how much coverage to get. Why? The amount of coverage is a factor that drastically affects e and o insurance costs.
How much E&O insurance you need to get depends on your job. For example, doctors decide to get $5 million coverage. Accountants and bookkeepers, on the other hand, do fine having a $2 million coverage. For computer technicians and other related jobs, $1 million errors and omissions insurance is enough.
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So how much does errors and omissions insurance cost? Your errors and omissions insurance costs will vary based on the insurance company chosen and coverage offered.
How much is errors and omissions (E&O) insurance in practical terms?
The average error and omission insurance cost is $31.67 a month or $380.4 a year for a $1 million coverage
Here’s a table showing the E&O insurance costs of companies with the most comprehensive policies right now:
|Monthly Rate||Annual Rate||Best for|
|CoverWallet||$29||$348||Small businesses looking for the cheapest E&O insurance|
|Thimble||$36||$432||New small businesses who haven't had previous insurance|
|Next||$28.83||$345.96||Errors and omissions insurance with discounts|
|Hiscox||$36.75||$441||Small businesses, especially realtors, looking for quality E&O coverage.|
|AIG||$22.50||$270||Established small businesses with low claims history|
|Pogo||$40||$480||Small sole proprietorships or freelancers|
Another way to learn about the cost of errors and omissions insurance is to explore the pricing based on the profession of the policyholder. This section will show you the cost of premiums for professions that absolutely need errors and omissions insurance.
Errors and omissions insurance for insurance agents is important because they may omit certain aspects of their contract or be negligent and miss important milestones. Claims against insurance agents can arise because of a variety of mistakes. Such mistakes can be:
Telling a customer to get a particular insurance policy that’s actually useless
Overbilling the customer
Losing the customer’s important document
Sharing important customer details with third parties
So how much do insurance agents pay? Errors & omissions insurance cost for insurance agents is $58 a month or $696 a year.
Like insurance agents much of the risk involved in working as a real estate agent lies in the lack of expertise and knowledge needed. Since no person is infallible, there is more risk for professionals selling high-dollar items such as real estate.
E&O coverage for real estate agents covers the cost of attorneys fees as well as the settlements or judgments that result after the lawsuit. As such, the average cost of e&o insurance for real estate agents is $59 per month or $708 per year.
Accounting and bookkeeping errors and ommissions insurance offers $1 million - $2 million in coverage. The cost is $38 per month or $456 a year. This kicks in when an accountant or bookkeeper commits any of the following and a client decides to file a claim to get reimbursement for economic or financial losses:
Omitting or duplicating an entry
Inputting the figures in the wrong account
Treating expenses as an item or vice versa
The cost of errors and omissions insurance for glaziers is $43 a month or $516 a year for a $1 million coverage. Glaziers can use their errors and omissions to pay for defense costs and compensatory payments if a client files a claim because of the following:
The wrong type of glass is installed in a particular structure
Sloppy glass installation service resulting in significant damage to a structure
Installation of substandard glass
Freight broker’s errors and omissions insurance offers $1 million - $2 million coverage. Its cost is $47.25 per month or $567 per year. Errors and omissions insurance provides protection when a client files a claim because a freight broker committed any of the following:
Failure to deliver a load as scheduled
Hiring an owner-operator or trucking company not fit to carry the load
Not filing the right documents for a client’s load
Not being transparent about the service offered to a client
Errors and omissions insurance for fire alarm installers cost $8 per month or $86 per year. At this price, the policyholder enjoys $300,000 - $1 million coverage. Fire alarm installers can use errors and omissions insurance when a client files a claim because:
The installed fire alarm keeps setting false alarms off
Forgot to interconnect all alarms
Failed to test the alarm before claiming that the installation project has been completed
Only installed one type of alarm
The cost of errors and omissions insurance for appliance repair shops and technicians is $27.59 per month or $331.08 per year. Errors and omissions insurance will provide protection when a client files a claim because of:
Failure to test the appliance repaired before giving it back to the client
Arborists pay $20 a month or $240 per year for errors and omissions insurance providing $500,000 - $1 million in coverage. Errors and omissions insurance will protect arborists when a claim is filed because of:
Over-trimming the tree
Trimming just any random branch of the tree
Improper disposal of debris after trimming a client’s tree
Errors and omissions insurance for lawyers, also known as legal malpractice insurance, costs $80 per month or $960 per year. This will cover defense costs and compensatory payments when a client files a claim because lawyers commit the following:
Missing deadlines and the filing of court proceedings
Not providing quality defense
Misspelling names on a legal document
Failure to show up in court
Draft contracts with a lot of inconsistencies
The cost of errors and omissions for veterinarians is $54.19 per month or $650.28 per year for a $1 million coverage. Veterinarian errors and omissions insurance will cover claims filed because of the following:
Prescribing the wrong drug or administering the wrong dosage to a patient
Social workers pay $80 per month or $960 per year for errors and omissions insurance having $1 million - $2 million coverage. For social workers, errors and omissions insurance will cover claims as a result of:
Failure to refer
Breach of confidence or privacy
Improper referral or placement
Violation of civil rights
Failure to supervise property
Failure to warn a third-party
Errors and omissions insurance for EMTs costs $98 per month or $1,176 per year for $1 million - $2 million coverage. Note that some insurance companies offer errors and omissions insurance having $3 million - $5 million coverage and this will be significantly expensive. EMT errors and omissions insurance will cover the cost of claims filed due to the following:
Administering the wrong dosage or wrong drug to a patient
Mishandling a patient
Failure to follow up
Engineers pay $150 per month or $1,800 per year for errors and omissions insurance offering $2 million in coverage. This will cover attorney fees, other associated legal costs, and compensatory payments when a client files a claim because of the following:
Failure to submit or show foolproof plans on deadlines
Hiring unqualified personnel
Failure to retain qualified personnel
Errors in blueprints and other engineering plans as due to lack of research, skill, or experience
Not checking a construction project’s compliance with legal requirements
The price of errors and omissions insurance for personal trainers is $35 per month or $420 per year for $1 million coverage. Personal trainers can use their errors and omissions insurance to cover claims filed because:
The client sustained injuries because the personal trainer didn’t correct bad posture
The personal trainer instructed the lifting of too much weight or the execution of routines not fit for the client’s current physique
Failure to spot/assist the client when lifting weights
Spin instructors might unintentionally cause a student to overexert himself or herself. This incident can be a ground for a claim. Errors and omissions insurance for spin instructors is cheap. On average, it only costs $9.50 per month or $114 per year for a $1 million coverage.
Event planners might miss deadlines and waste the client’s time and resources. Many find themselves facing claims for this mistake. Errors and omissions insurance for event planners costs $26 per month or $312 per year for a $1 million coverage
If you are looking for insurance that is tailored for your business, CoverWallet is your answer for business solutions. It is part of Aon, which gives it access to global resources and numerous insurance products.
CoverWallet’s errors and omissions insurance is available in its standard insurance plan together with general liability insurance. You can also avail errors and omissions through the company’s custom plan that also allows you to get commercial property insurance, workers compensation insurance, commercial auto insurance, and other types of protection for your business.
Fast and easy application process
Excellent customer service
Affordable pricing by multiple carriers
Not the actual insurance company but a broker
Best for: Small businesses looking for the cheapest E&O insurance
Average cost: $29 per month
Our rating: 10/10
Thimble started off with a different name (Verifly) in 2016, but it has expanded its services and used its current name since 2019. The company offers many insurance policies commonly needed by a business owner like you. Thimble’s errors and omissions insurance is bundled together with its general liability insurance. Decide to be insured by this company because you can decide to only have coverage for hours, days, weeks, or months.
Coverage is offered for many professions, including niche markets.
Flexible coverage options offered
Mobile app to manage accounts
Claims can be cumbersome with limited reporting options.
All business coverage is not available in all states.
Best for: New small businesses who haven't had previous insurance
Average cost: $36 per month
Our rating: 6/10
NEXT offers discounts if you bundle its errors and omissions insurance with other liability policies and business insurance policies. Go for Next if you want a carrier that modernizes insurance services.
Errors and omissions is available for a lot of professions
NEXT is not the ideal carrier for those who love traditional insurance processes
Best for: Errors and omissions insurance with discounts
Average cost: $28.83 per month
Our rating: 8/10
One of the most familiar commercial insurance companies on the internet, Hiscox offers an errors and omissions insurance cost that is stable and fair.
Offers tailored insurance to meet your industry
Competitive error and omissions insurance cost with flexible payment options
Customer service by phone only
Many customer complaints
Best for: Small businesses, especially realtors, looking for quality E&O coverage.
Average cost: $36.75 per month
Our rating: 7/10
The beginnings of AIG started over 100 years ago, and it now offers insurance to people and businesses all around the world. AIG can handle your personal and commercial insurance needs, and it remains competitive because of its strong foundation and large, corporate size.
It covers many industries, including aerospace
Offers reputation coverage for damages suffered after a lawsuit
Multiple other business policies available to bundle
No general liability
Must purchase through an agent
Best for: Established small businesses with low claims history
Average cost: $22.50 per month
Our rating: 8/10
The cost of E&O insurance is what has made Pogo a big contender in the business insurance world. Their online application process and coverage for freelancers have made them a standout choice for E&O insurance.
Easy online application used for multiple quotes
Coverage available for freelancers
Many policy types are available
No instant EO insurance quotes
Limited transparency about insurance companies
Best for: Small sole proprietorships or freelancers
Average cost: $40 per month
Our rating: 8/10
Getting an E & O insurance quote might seem like a hassle, but it doesn't have to be if you shop around and make sure you are getting the right protection for the money. One lawsuit can put a small business under without insurance; while one lawsuit is just a hiccup if you have insurance.
Ready to get insured? It’s to compare E&O insurance quotes online! To do so, simply click the “Get Quotes” button, complete the form and you’ll shortly receive E&O insurance quotes online for your required coverage from the best carriers in the United States. Start now!
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Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!