How Much Does Errors and Omissions Insurance Cost?

There's no single price for errors and omissions (E&O) insurance. E&O, also called professional liability insurance, is priced on the work you do, your revenue, your claims history and the coverage limits you choose. A solo consultant and a 20-person engineering firm can get very different quotes for the same type of policy. The best way to see what your business would pay is to request a quote. Tivly can match you with a partner from our network of 450+ insurance partners.

What Affects the Cost of E&O Insurance?

Insurance providers look at how likely a client is to claim your work cost them money, and how large that claim could be. These are the main factors:

1. Your profession. Work where a mistake can cause a large financial loss, such as engineering, financial advice or IT, is often priced higher than lower-risk services.
2. Revenue and team size. More clients and larger projects mean more chances for a claim.
3. Claims history. Past claims, or a complaint that could become a claim, can raise your premium.
4. Coverage limits. Higher per-claim and aggregate limits raise the premium.
5. Deductible. A higher deductible usually lowers the premium but raises what you pay if there's a claim.
6. Experience. Years in business and professional credentials can work in your favor.
7. Location. State rules and the local legal environment can affect pricing.

What Does E&O Insurance Cover?

E&O insurance can cover claims that your professional work or advice caused a client financial harm. That can include:

1. Mistakes or oversights in your work
2. Negligence, or a claim that you didn't meet professional standards
3. Missed deadlines that cost a client money
4. Inaccurate advice or recommendations
5. Legal defense costs, even if the claim has no merit
6. Settlements or judgments, up to your policy limits

E&O generally doesn't cover bodily injury or property damage. Those claims fall under general liability insurance.

How Do Coverage Limits Change the Price?

E&O limits are written as two numbers. The per-claim limit is the most the policy pays for one claim. The aggregate limit is the most it pays for all claims during the policy period. Raising either one raises the premium.

Also check whether defense costs sit inside or outside your limits. If they're inside, legal fees reduce the amount left to pay a settlement.

Why Does a Claims-Made Policy Affect Cost?

Most E&O policies are claims-made. They cover claims filed while the policy is active, for work done after the policy's retroactive date. If you cancel or retire, you may need tail coverage (an extended reporting period) for claims filed later, and that is an added cost. Keeping coverage continuous helps you keep your retroactive date.

Does E&O Insurance Cost More for Some Professions?

Yes. Price follows the size of the financial loss a mistake could cause.

1. Real estate agents are required to carry E&O in some states. Pricing often depends on transaction volume. See realtor insurance.
2. Insurance agents often need E&O before an insurance company will appoint them. See E&O for insurance agents.
3. Travel agents face claims over booking errors and lost trips. See travel agent insurance.
4. Consultants and IT professionals are often required by contract to carry E&O. See professional liability for consultants.
5. Engineers and architects are typically priced higher because design errors can lead to costly claims. See professional liability for engineers.

What Can Lower Your E&O Premium?

1. Choose a higher deductible if you can cover it after a claim.
2. Use written contracts that define your scope of work.
3. Keep records of client communication and approvals.
4. Keep a clean claims record and report incidents early.
5. Ask whether paying the annual premium in full is an option. Some providers offer a lower total.

How Much E&O Insurance Do I Need?

Start with what's required of you. Many client contracts set a minimum E&O limit, and some state licensing boards set one too. Beyond that, consider the largest project you handle and how much a client could lose if something went wrong. A Tivly partner can help you review your contracts and choose limits.

How Do I Get an E&O Insurance Quote With Tivly?

1. Fill out the form above or call 877-907-5267.
2. Tell us about your work, your annual revenue and any limits your clients require.
3. Our team matches you with a partner from our network of 450+ insurance partners, who can quote your business directly.