The average cost of errors and omissions (E&O) insurance is $78 monthly with premiums ranging from $37 to $166 if you're a mortgage broker depending on your industry and location. In our study of 79 industries, this type of coverage is typically the 2nd most affordable out of the four most common types of business insurance coverage.
Errors and Omissions Insurance Cost
MoneyGeek's study shows that errors and omissions insurance costs most small businesses an average $78 per month ($931 per year).
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Updated: October 27, 2025
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E&O Insurance Costs: Key Takeaways
Depending on your industry and state, you'll spend somewhere between $32 and $193 monthly for errors and omissions insurance (E&O).
Industry type, business size, location, coverage limits and claims history impact your E&O business insurance premiums the most.
Compare business insurance quotes, increase deductibles, bundle policies and join professional associations to lower errors and omissions insurance costs.
How Much Does Errors and Omissions Insurance Cost?
LEARN MORE ABOUT E&O INSURANCE
Get answers to your biggest E&O questions with these guides:
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Industry
State
Average Errors and Omissions Insurance Cost by Industry
Errors and omissions insurance costs vary widely by profession anywhere from $37 to $166 a month at the industry level. If you're a mortgage broker or accountant, expect to pay 85% to 115% above respectively the $78 monthly average for professional indemnity coverage because your mistakes often trigger six-figure lawsuits. Lower-risk businesses like barber shops pay 45% below average since a bad haircut won't bankrupt clients.
Check your industry's business insurance costs for E&O insurance below:
| Accountants | $146 | $1,751 |
| Ad Agency | $99 | $1,188 |
| Auto Repair | $82 | $989 |
| Automotive | $75 | $900 |
| Bakery | $53 | $634 |
| Barber | $43 | $513 |
| Beauty Salon | $49 | $589 |
| Bounce House | $59 | $709 |
| Candle | $42 | $502 |
| Cannabis | $122 | $1,468 |
| Catering | $79 | $950 |
| Cleaning | $55 | $656 |
| Coffee Shop | $61 | $732 |
| Computer Programming | $105 | $1,257 |
| Computer Repair | $63 | $752 |
| Construction | $77 | $921 |
| Consulting | $107 | $1,288 |
| Contractor | $63 | $759 |
| Courier | $50 | $598 |
| DJ | $45 | $546 |
| Daycare | $108 | $1,296 |
| Dental | $84 | $1,006 |
| Dog Grooming | $55 | $658 |
| Drone | $106 | $1,273 |
| Ecommerce | $62 | $739 |
| Electrical | $64 | $768 |
| Engineering | $104 | $1,248 |
| Excavation | $68 | $813 |
| Florist | $38 | $453 |
| Food | $110 | $1,321 |
| Food Truck | $59 | $708 |
| Funeral Home | $81 | $968 |
| Gardening | $40 | $481 |
| HVAC | $81 | $977 |
| Handyman | $54 | $651 |
| Home-based business | $37 | $445 |
| Hospitality | $74 | $883 |
| Janitorial | $50 | $597 |
| Jewelry | $61 | $735 |
| Junk Removal | $67 | $806 |
| Lawn/Landscaping | $51 | $616 |
| Lawyers | $146 | $1,746 |
| Manufacturing | $60 | $716 |
| Marine | $88 | $1,054 |
| Massage | $106 | $1,272 |
| Mortgage Broker | $166 | $1,992 |
| Moving | $82 | $981 |
| Nonprofit | $50 | $604 |
| Painting | $64 | $765 |
| Party Rental | $55 | $660 |
| Personal Training | $70 | $844 |
| Pest Control | $95 | $1,142 |
| Pet | $46 | $553 |
| Pharmacy | $57 | $688 |
| Photography | $64 | $765 |
| Physical Therapy | $94 | $1,131 |
| Plumbing | $90 | $1,076 |
| Pressure Washing | $57 | $689 |
| Real Estate | $125 | $1,505 |
| Restaurant | $82 | $980 |
| Retail | $55 | $658 |
| Roofing | $97 | $1,170 |
| Security | $100 | $1,197 |
| Snack Bars | $48 | $571 |
| Software | $95 | $1,139 |
| Spa/Wellness | $110 | $1,322 |
| Speech Therapist | $99 | $1,186 |
| Startup | $72 | $864 |
| Tech/IT | $98 | $1,179 |
| Transportation | $95 | $1,139 |
| Travel | $97 | $1,163 |
| Tree Service | $75 | $906 |
| Trucking | $111 | $1,333 |
| Tutoring | $61 | $728 |
| Veterinary | $116 | $1,391 |
| Wedding Planning | $77 | $921 |
| Welding | $77 | $923 |
| Wholesale | $62 | $739 |
| Window Cleaning | $62 | $748 |
Note: These rates come from quotes we collected for a standard small business profile: three employees (including the owner) with $1 million/$2 million coverage limits. Since we only sampled a handful of insurers, your quotes will differ. Your rate depends on your industry, location, business size and claims history.
Average Errors and Omissions Insurance Cost by State
Differences in court systems and professional liability laws make errors and omissions insurance costs vary by state from $67 to $90 monthly on average. If you operate in New York or California, expect to pay around $1,100 annually. States like North Carolina and North Dakota provide affordable small business coverage at around $800, a $400 annual difference.
| Alabama | $77 | $918 |
| Alaska | $70 | $840 |
| Arizona | $74 | $884 |
| Arkansas | $74 | $893 |
| California | $87 | $1,038 |
| Colorado | $77 | $923 |
| Connecticut | $84 | $1,014 |
| Delaware | $83 | $1,001 |
| Florida | $84 | $1,009 |
| Georgia | $79 | $948 |
| Hawaii | $81 | $967 |
| Idaho | $73 | $882 |
| Illinois | $85 | $1,025 |
| Indiana | $76 | $906 |
| Iowa | $74 | $886 |
| Kansas | $75 | $905 |
| Kentucky | $73 | $870 |
| Louisiana | $88 | $1,051 |
| Maine | $68 | $810 |
| Maryland | $74 | $889 |
| Massachusetts | $82 | $980 |
| Michigan | $73 | $880 |
| Minnesota | $73 | $875 |
| Mississippi | $78 | $934 |
| Missouri | $77 | $923 |
| Montana | $77 | $926 |
| Nebraska | $73 | $881 |
| Nevada | $88 | $1,061 |
| New Hampshire | $77 | $924 |
| New Jersey | $88 | $1,054 |
| New Mexico | $78 | $939 |
| New York | $90 | $1,077 |
| North Carolina | $67 | $807 |
| North Dakota | $68 | $810 |
| Ohio | $72 | $864 |
| Oklahoma | $73 | $877 |
| Oregon | $72 | $865 |
| Pennsylvania | $90 | $1,075 |
| Rhode Island | $85 | $1,024 |
| South Carolina | $80 | $959 |
| South Dakota | $73 | $872 |
| Tennessee | $76 | $909 |
| Texas | $78 | $939 |
| Utah | $74 | $889 |
| Vermont | $75 | $894 |
| Virginia | $71 | $850 |
| Washington | $88 | $1,061 |
| West Virginia | $81 | $978 |
| Wisconsin | $76 | $916 |
| Wyoming | $72 | $865 |
Note: These rates come from quotes we collected for a standard small business profile across all 50 states. Your premium depends on your industry, business size, claims history and which company you choose. Besides that, rates also vary between insurers, so expect different prices when you get your own quotes.
What Affects the Cost of Errors and Omissions Insurance?
Five factors control what you'll pay for E&O insurance: your profession, business size, coverage limits, claims history and location. Industry risk alone can increase your professional liability premium by up to 200%.
Industry and risk level
Your profession creates the biggest cost difference. High-stakes advisory roles like financial planning face premiums three times higher than personal service businesses because client errors often exceed $100,000 in damages.
Business size and revenue
Larger operations pay 50% to 80% more because bigger contracts mean bigger potential losses. A solo consultant might pay $85 monthly, while a 10-person firm handling enterprise clients can expect rates over $130 because mistakes affect more stakeholders and cost more to fix.
Coverage limits
Standard $1 million professional indemnity coverage serves most small businesses, but upgrading to $2 million adds $20 to $40 monthly. Mortgage brokers, attorneys and real estate professionals requiring $5 million limits see premiums double from baseline rates.
Claims history and experience
One professional liability claim increases rates by 25% to 50% for three to five years. Multiple claims can push premiums 75% higher, while clean records maintain standard pricing.
Geographic location
High-litigation states cost 30% to 35% more than business-friendly regions because more lawsuits get filed and juries award bigger settlements.
Strategies to Get Cheap Errors and Omissions Insurance
Six strategies help you cut your insurance costs and find affordable E&O coverage without sacrificing financial protection:
- 1Figure out if you actually need E&O insurance
You need coverage if you give professional advice, offer consulting services or do work where your mistakes could cost clients money. Make sure you're buying the right business coverage type for that will cover common risks in your industry.
- 2Don't overbuy coverage limits
Most small businesses start with $1 million per claim and $2 million total coverage limits. Only upgrade if your biggest potential client loss justifies the extra cost. Jumping to $5 million limits can double your monthly premium.
- 3Shop multiple insurers
Professional liability rates vary by 40% to 60% between companies for identical coverage. Get quotes from at least three insurers to save 15% to 30% compared to accepting the first offer.
- 4Increase your deductible
Raise your deductible from $1,000 to $5,000 to cut monthly premiums by 20% to 40%. Make sure you have the deductible amount available if you need to file a claim.
- 5Bundle with existing business insurance
Add E&O coverage to your general liability and workers' comp package to trigger multi-policy discounts of 10% to 25%. Managing multiple types of coverage becomes easier with one carrier handling everything.
- 6Consider professional associations
Professional groups often get better rates for their members, saving you 15% to 20% compared to buying coverage on your own. Check if your industry association offers discounted professional indemnity insurance as part of membership.
Cost of Errors and Omissions Insurance: Bottom Line
Errors and omissions insurance cost varies widely, from $32 to $193 per month, depending on your industry and location. Your business size, coverage limits and claims history all influence premiums. Smart shopping strategies like comparing quotes, bundling policies and increasing deductibles help you find cheaper coverage.
E&O Insurance Cost: FAQ
We've answered the most frequently asked questions about errors and omissions insurance cost and coverage options to help you make informed decisions:
How much does errors and omissions insurance cost per month?
Errors and omissions insurance costs vary widely by profession, with small businesses typically paying $32 to $193 monthly. High-risk professions pay three to four times more than personal service businesses due to greater financial exposure.
What factors affect errors and omissions insurance pricing?
Your profession creates the biggest cost difference, with financial services paying double the average rates. Your business size, coverage limits, claims history and location also impact your premium significantly.
How can I lower my errors and omissions insurance costs?
Shop multiple insurers to save 15% to 30% compared to the first quote. Raise your deductible to cut premiums by 20% to 40%. Bundle with existing business insurance and join professional associations for additional discounts.
Why do mortgage brokers pay so much more than other professions?
Mortgage brokers face the highest premiums because loan errors can cost clients hundreds of thousands in damages. Their potential claim amounts make them the costliest profession to insure.
How We Determined the Cost of Errors and Omissions Insurance
Errors and omissions insurance costs vary so much between professions that many small business owners can't budget accurately for coverage. We designed our research to give you reliable cost data based on real quotes from a limited sample of insurers. Individual quotes will vary based on your specific business profile and chosen insurance company.
Standard Business Profile
We collected E&O insurance quotes using a consistent business profile that represents established small professional service companies:
- Three employees total (including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per claim / $2 million total coverage limits
This profile is large enough to avoid new business penalties but small enough for competitive rates. It matches the typical small professional service firm that needs E&O coverage.
Coverage Focus
We focused specifically on errors and omissions insurance rather than bundled policies to show exactly what E&O coverage costs. We chose companies with broad national coverage and online quote capabilities to ensure you can actually get these rates when shopping for your business.
About Mark Fitzpatrick
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.