Updated: October 13, 2025

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Key Takeaways

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The Hartford, NEXT and Progressive Commercial offer the cheapest errors and omissions insurance for small businesses across industries.

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Your E&O premium depends on your industry, business size, coverage limits and claims history, with higher-risk professions paying more.

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Reduce E&O costs by getting coverage that fits your needs, using strategies appropriate for your industry and preventing claims before they happen.

Cheap Errors and Omissions Insurance Companies

Whether you call it errors and omissions, professional liability or professional indemnity insurance, this coverage provides financial protection for your business when clients claim your professional services caused them harm.

Our research found that The Hartford offers the cheapest coverage, with a monthly rate of $72 ($858 annually). Considering that the average cost of E&O insurance is $78 monthly, that saves you $6. Other low-cost options include NEXT, Progressive Commercial and Thimble, all offering rates below $77 monthly.

The Hartford$72$858
NEXT$72$867
Progressive Commercial$75$904
Thimble$76$914
Simply Business$76$917
Hiscox$77$928
Coverdash$78$933
biBerk$79$953
Nationwide$82$987
Chubb$89$1,062

Disclaimer

Find Insurance for Your Business

Select your industry and state to get a customized quote.

Industry
State
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The Hartford

Cheapest Overall

MoneyGeek Rating
4.7/ 5
4.8/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options

  • Average Cost of E&O Insurance

    $72/month

  • Savings Compared to Industry Average

    $6/month

  • Our Survey: Claims Process

    4.5/5

  • Our Survey: Likely to be Recommended to Others

    4.5/5

Cheap Errors and Omissions Insurance Companies by Industry

Our analysis shows that The Hartford has the cheapest E&O rates in 71 industries. High-risk businesses like mortgage brokers will find it valuable since its $149 monthly rate beats the $166 industry average by $17.

NEXT offers the lowest rate at $26 monthly for food businesses, delivering massive $84 savings compared to the $110 industry average and making professional liability coverage surprisingly affordable.

AccountantsThe Hartford$130
Ad AgencyNationwide$47
Auto RepairThe Hartford$74
AutomotiveThe Hartford$67
BakeryThe Hartford$47
BarberThe Hartford$38
Beauty SalonThe Hartford$44
Bounce HouseThe Hartford$53
CandleThe Hartford$37
CannabisThe Hartford$110
CateringThe Hartford$71
CleaningThe Hartford$49
Coffee ShopThe Hartford$55
Computer ProgrammingThe Hartford$94
Computer RepairThe Hartford$56
ConstructionCoverdash$41
ConsultingThe Hartford$96
ContractorThe Hartford$45
CourierChubb$34
DJThe Hartford$41
DaycareThe Hartford$96
DentalThimble$62
Dog GroomingThe Hartford$49
DroneThe Hartford$95
EcommerceThe Hartford$55
ElectricalSimply Business$42
EngineeringCoverdash$72
ExcavationThe Hartford$61
FloristThe Hartford$34
FoodNEXT Insurance$26
Food TruckThe Hartford$52
Funeral HomeThe Hartford$73
GardeningThe Hartford$36
HVACThe Hartford$73
HandymanThe Hartford$48
Home-based businessThe Hartford$33
HospitalityThe Hartford$65
JanitorialThe Hartford$44
JewelryThe Hartford$55
Junk RemovalThe Hartford$60
Lawn/LandscapingThe Hartford$46
LawyersThe Hartford$130
ManufacturingThe Hartford$53
MarineThe Hartford$78
MassageThe Hartford$94
Mortgage BrokerThe Hartford$149
MovingThe Hartford$73
NonprofitThe Hartford$45
PaintingThe Hartford$57
Party RentalThe Hartford$49
Personal TrainingThe Hartford$63
Pest ControlThe Hartford$85
PetThe Hartford$41
PharmacyChubb$46
PhotographyThe Hartford$57
Physical TherapyThe Hartford$84
PlumbingThe Hartford$80
Pressure WashingThe Hartford$51
Real EstateThe Hartford$113
RestaurantThe Hartford$73
RetailThe Hartford$49
RoofingThe Hartford$87
SecurityThe Hartford$89
Snack BarsThe Hartford$43
SoftwareThe Hartford$85
Spa/WellnessThe Hartford$98
Speech TherapistThe Hartford$88
StartupThe Hartford$64
Tech/ITThe Hartford$88
TransportationThe Hartford$85
TravelThe Hartford$87
Tree ServiceThe Hartford$68
TruckingThe Hartford$99
TutoringThe Hartford$54
VeterinaryThe Hartford$103
Wedding PlanningThe Hartford$68
WeldingThe Hartford$68
WholesaleThe Hartford$55
Window CleaningThe Hartford$56

Disclaimer

Cheap Errors and Omissions Insurance Companies by State

Small businesses in North Carolina have the cheapest rates in our study. If you're based there, you can get E&O coverage for $62 from The Hartford, the most affordable provider in 39 states. Its rate is $28 lower than the state average of $90.

Even in Louisiana, where professional indemnity insurance is most expensive, The Hartford offers monthly savings of $35. Although coverage costs $83 monthly, it's still lower than the $118 state average.

AlabamaThe Hartford$70
AlaskaNEXT$67
ArizonaNEXT$66
ArkansasThe Hartford$68
CaliforniaThe Hartford$80
ColoradoNEXT$70
ConnecticutThe Hartford$78
DelawareNEXT$75
FloridaThe Hartford$78
GeorgiaThe Hartford$73
HawaiiNEXT$77
IdahoNEXT$67
IllinoisThe Hartford$78
IndianaThe Hartford$69
IowaThe Hartford$68
KansasThe Hartford$69
KentuckyThe Hartford$66
LouisianaThe Hartford$83
MaineNEXT$63
MarylandThe Hartford$68
MassachusettsThe Hartford$75
MichiganThe Hartford$67
MinnesotaThe Hartford$67
MississippiThe Hartford$71
MissouriThe Hartford$71
MontanaThe Hartford$70
NebraskaThe Hartford$68
NevadaNEXT$80
New HampshireThe Hartford$71
New JerseyThe Hartford$81
New MexicoThe Hartford$72
New YorkNEXT$82
North CarolinaThe Hartford$62
North DakotaNEXT$63
OhioThe Hartford$66
OklahomaThe Hartford$67
OregonThe Hartford$66
PennsylvaniaThe Hartford$83
Rhode IslandThe Hartford$78
South CarolinaThe Hartford$73
South DakotaThe Hartford$67
TennesseeThe Hartford$69
TexasThe Hartford$72
UtahNEXT$67
VermontThe Hartford$69
VirginiaThe Hartford$65
WashingtonThe Hartford$81
West VirginiaThe Hartford$76
WisconsinThe Hartford$70
WyomingThe Hartford$66

Disclaimer

A Guide to Low-Cost Errors and Omissions Insurance

While shopping for cheap E&O insurance helps, your industry and claims history affect which rates you can access. You'll have to combine competitive rate shopping with smart policy management techniques to reduce your professional liability costs over time.

How to Get Cheap Errors and Omissions Insurance

Getting affordable E&O coverage starts with understanding your actual needs, then applying professional liability-specific cost-reduction strategies. Follow these steps to secure the right financial protection at the best price:

  1. 1

    Determine if you need E&O insurance

    You need E&O coverage if your professional advice, recommendations or services affect client finances or operations. If you sell physical products or provide basic services without giving advice, you generally don't need professional liability coverage, though you need it for real estate, insurance or health care licensing in some states.

  2. 2

    Calculate the right coverage amount for your profession

    Base your coverage on the biggest loss you could cause a client, not how much money you make. Solo practitioners working with small businesses usually get $500,000 coverage. Consultants with mid-size company clients often choose $1 million. Financial planners and similar professionals handling major business decisions generally need $2 million coverage. Lawyers, architects and others whose mistakes could cost clients millions should consider $5 million.

  3. 3

    Target insurers that specialize in your profession

    Insurers focused on your profession often offer you better rates than general business insurance companies. These specialized carriers understand your specific risks and can price your coverage more accurately.

  4. 4

    Choose higher E&O deductibles strategically

    E&O claims tend to be larger but less frequent than general liability claims, making higher deductibles more practical. Consider $2,500 to $5,000 deductibles since professional liability disputes often cost thousands to defend, even if you win.

  5. 5

    Pay annually to avoid installment fees

    Paying your full E&O premium upfront eliminates monthly installment fees, which add hundreds to your yearly cost.

  6. 6

    Bundle with other business insurance

    Many insurers offer discounts when you combine E&O coverage with general liability or other business insurance policies. Bundling can reduce your total insurance costs and simplify your coverage management at the same time.

  7. 7

    Leverage your clean claims record

    E&O insurers offer you substantial discounts if you have no past professional liability claims. Maintain your record by documenting client communications, establishing clear project boundaries and addressing concerns before they escalate.

Cost-Savings Strategies by Business Phase

Your business stage determines which E&O cost strategies will work best for you. A solo practitioner starting out has different needs and opportunities than an established firm with years of claims history.

Starting Out
Start with affordable E&O insurance coverage based on your actual client contracts rather than what you hope to achieve. Choose higher deductibles to reduce professional liability costs since new practices typically have lower claim frequency, and the savings help preserve cash flow during your startup phase. Focus on cheap E&O insurance from carriers specializing in solo practitioners, as they often offer better rates than insurers targeting established firms.
Expanding
Increase your coverage limits to align with actual business growth, not projected growth. Increase limits only when you land larger contracts or expand into higher-risk services to keep E&O costs manageable and avoid buying excessive coverage too early. Maintain your claims-free discounts by implementing strong client communication protocols and documentation systems before growth makes these practices harder to sustain.
Established
Use your clean claims record to negotiate better rates or multi-year deals with your insurer. Check if your professional association has group plans since they're usually cheaper than individual policies. Higher deductibles become more practical once you understand your industry's claims patterns.

Cost-Savings Strategies by Industry Risk

Your profession's risk level determines how insurers price your E&O coverage and which cost strategies work best. A financial advisor faces different challenges and opportunities than a florist when shopping for professional liability insurance.

Low Risk

You provide tangible services or products with minimal professional advice. Client interactions focus on delivery rather than recommendations that could affect their finances or operations.

Basic coverage limits usually work fine for you. Bundle E&O with general liability to get package discounts since most insurers treat you as a lower risk. Go with higher deductibles to cut your premiums since claims in your field tend to be smaller.

Medium Risk

You provide professional services that include recommendations or expertise that could impact client operations, but the financial consequences are typically moderate and contained.

IT consultants, photographers, graphic designers, accountants serving small businesses, 

Shop for insurers specializing in your type of work rather than generic business insurance companies. Use detailed contracts to spell out exactly what you will and won't do for clients. It helps avoid scope creep that can lead to claims.

High Risk

Your professional advice directly influences major financial decisions, regulatory compliance or transactions where errors could result in substantial client losses or legal penalties.

Lawyers, financial advisors, real estate agents, mortgage brokers, architects on major projects
Stick with insurers who know your industry inside and out - they'll price your coverage more fairly than companies that lump all professionals together. Don't skimp on coverage limits since one mistake can cost your clients serious money and trigger regulatory issues.

Preventing E&O Insurance Claims

Finding affordable E&O coverage helps your budget, but preventing claims protects your finances and professional reputation. The best insurance strategy combines competitive rates with smart risk management practices that keep you out of trouble in the first place.

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    Real Estate Agents

    Document everything in writing: property disclosures, client communications and any market advice you provide. Set clear expectations about whether you're giving market analysis or formal valuations, and always recommend independent inspections rather than having clients rely solely on your assessments.

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    Financial Advisors

    Keep detailed records of all client meetings and investment recommendations, including your reasoning behind each suggestion. Before making recommendations, use written investment policy statements outlining client risk tolerance and document portfolio changes with explanations demonstrating ongoing suitability.

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    Accountants

    Establish firm deadlines for receiving client tax documents and communicate the consequences of late submissions. Use engagement letters that clearly define your services versus client responsibilities, and implement multiple review processes before finalizing any returns or statements.

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    IT Consultants

    Create detailed project scopes that specify exactly what systems you'll work on and what you can realistically deliver. Document all system changes and maintain backups before implementing updates, while setting clear boundaries between consulting advice and ongoing system management responsibilities.

    briefcase icon

    Lawyers

    Track statute of limitations deadlines using multiple calendar systems and confirm receipt of important documents. Document case developments and strategy changes in writing rather than relying on phone conversations, and refer cases outside your expertise to qualified specialists.

Cheapest Errors and Omissions Insurance: Bottom Line

E&O insurance doesn't have to break your budget. Our study found The Hartford most affordable at $72 monthly, though your actual rate depends on your industry and coverage needs. To maximize your savings, shop smart. That means comparing multiple insurers, considering higher deductibles and bundling policies.

Low Cost Errors and Omissions Insurance: FAQ

We answered the most common questions about cheap errors and omissions insurance:

What is the cheapest errors and omissions insurance?

How much does E&O insurance cost by industry?

What coverage amount do I need for E&O insurance?

Can I save money by choosing higher E&O deductibles?

Which states have the cheapest E&O insurance rates?

Should I bundle E&O insurance with other business coverage?

How can I prevent E&O insurance claims?

How We Determined Cheap Errors and Omissions Insurance Rates

You need E&O coverage, but don't want to blow your budget on premiums. We tested which insurers actually deliver cheap rates without skimping on financial protection.

How We Tested E&O Insurance Costs

We called 10 major insurers and requested quotes using the same business profile:

  • Solo practitioner or small firm (one to two employees total)
  • $75,000 annual revenue
  • Clean claims history (no prior E&O claims)
  • $1 million per occurrence/$1 million aggregate coverage limits

It represents the most common scenario for professionals shopping for budget-friendly E&O coverage. We chose companies offering online quotes and competitive pricing for smaller businesses.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

Read Full Bio »

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