Errors and Omissions Insurance Cost: How Much is E&O Insurance?

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. 

Also read: Professional Liability Insurance 101, Pros & Quotes From $5

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What is E&O insurance? 

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 

• Misrepresentation

• Gross negligence

• Omissions

• Errors

• 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 

• Claims-made

• Occurrence

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. 

Errors and Omissions Insurance vs General Liability Insurance

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. 

How Much Errors and Omissions Insurance Do I Need? 

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.

Also read: Professional Indemnity Insurance: Cost & Quotes From $11

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Errors and Omissions Insurance Cost

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:

 

Cost of Errors and Omissions Insurance for Different Professions

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. 

E&O Insurance Cost for Insurance Agents

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.

How Much is Errors and Omissions Insurance for Real Estate Agents?

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 Omissions Insurance Cost

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

• Transposing numbers

• Inputting the figures in the wrong account

• Treating expenses as an item or vice versa

Glazier Errors and Omissions Insurance Cost

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 Errors and Omissions Insurance Cost 

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

Fire Alarm Installer Errors and Omissions Insurance Cost

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 

Appliance Repair Errors and Omissions Insurance Cost 

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:

• Troubleshooting mistakes

• Incorrect diagnosis

• Reassembly issues

• Failure to test the appliance repaired before giving it back to the client

Cost of Errors and Omissions Insurance for Arborists 

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

• Tree topping

• Improper disposal of debris after trimming a client’s tree

Cost of Errors and Omissions Insurance for Lawyers 

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 

Cost of Errors and Omissions Insurance for Veterinarians

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:

• Misdiagnosis

• Prescribing the wrong drug or administering the wrong dosage to a patient

• Surgical mistakes

Cost of Errors and Omissions Insurance for Social Workers 

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

• Sexual impropriety

• Breach of confidence or privacy

• Improper referral or placement

• Violation of civil rights

• Failure to supervise property

• Failure to warn a third-party

• Undue influence

Cost of Errors and Omissions Insurance for EMTs

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

• Delayed response

• Mishandling a patient

• Misdiagnosis

• Failure to follow up

Engineer Errors and Omissions Insurance Price 

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

Personal Trainer Errors and Omissions Insurance Price 

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 Instructor Errors and Omissions Insurance Cost

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 Planner Errors and Omissions Insurance Cost

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

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Best Errors and Omissions Insurance Companies

 

CoverWallet Errors and Omissions Insurance

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. 

Pros

• Fast and easy application process

• Excellent customer service

• Affordable pricing by multiple carriers

Cons

• 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

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Thimble Errors and Omissions Insurance

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. 

Pros

• Coverage is offered for many professions, including niche markets.

• Flexible coverage options offered

• Fast application

• Mobile app to manage accounts

Cons

• 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

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NEXT Errors and Omissions Insurance

 

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. 

 

Pros

• Offers discounts

• Errors and omissions is available for a lot of professions

Cons

• 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

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Hiscox Errors and Omissions Insurance

One of the most familiar commercial insurance companies on the internet, Hiscox offers an errors and omissions insurance cost that is stable and fair. 

Pros

• Offers tailored insurance to meet your industry

• Covers realtors

• Competitive error and omissions insurance cost with flexible payment options

Cons

• 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

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AIG Errors and Omissions Insurance

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. 

Pros

• It covers many industries, including aerospace

• Offers reputation coverage for damages suffered after a lawsuit 

• Multiple other business policies available to bundle

Cons

• 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

 

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Pogo Errors and Omissions Insurance

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. 

Pros

• Easy online application used for multiple quotes

• Coverage available for freelancers

• Many policy types are available

Cons

• 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

The Cost of Errors and Omissions Insurance is Nothing Compared to the Protection 

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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