Cheapest Errors and Omissions 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.

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.

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.

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.

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

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.

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.