In our study, errors and omissions insurance (E&O) costs $32 to $193 per month, based on a business profile with three employees (including the owner), $150,000 annual payroll, $300,000 annual revenue, already insured status and $1 million per occurrence with $2 million aggregate coverage limits. However, actual costs vary by coverage type, state and industry, which we'll break down below.
Errors and Omissions Insurance Cost
Updated: July 28, 2025
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Key Takeaways
Errors and omissions insurance cost ranges from $32 to $193 per month, depending on your industry and state location.
Industry type, business size, coverage limits and claims history impact your E&O insurance premiums.
Compare quotes, increase deductibles, bundle policies and join professional associations to lower errors and omissions insurance costs.
How Much is Errors and Omissions Insurance?
LEARN MORE ABOUT ERRORS AND OMISSIONS INSURANCE
E&O insurance costs are just one piece of the puzzle. These guides cover everything else you need to know:
Errors and Omissions Insurance Cost by Industry
MoneyGeek's analysis of errors and omissions insurance cost shows mortgage brokers pay the highest per month premiums at $166, while home-based businesses pay the lowest at $37. The following table shows average monthly costs across industries:
| Accountants | $146 |
| Ad Agency | $99 |
| Auto Repair | $82 |
| Automotive | $75 |
| Bakery | $53 |
| Barber | $43 |
| Beauty Salon | $49 |
| Bounce House | $59 |
| Candle | $42 |
| Cannabis | $122 |
| Catering | $79 |
| Cleaning | $55 |
| Coffee Shop | $61 |
| Computer Programming | $105 |
| Computer Repair | $63 |
| Construction | $77 |
| Consulting | $107 |
| Contractor | $63 |
| Courier | $50 |
| DJ | $45 |
| Daycare | $108 |
| Dental | $84 |
| Dog Grooming | $55 |
| Drone | $106 |
| Ecommerce | $62 |
| Electrical | $64 |
| Engineering | $104 |
| Excavation | $68 |
| Florist | $38 |
| Food | $110 |
| Food Truck | $59 |
| Funeral Home | $81 |
| Gardening | $40 |
| HVAC | $81 |
| Handyman | $54 |
| Home-based business | $37 |
| Hospitality | $74 |
| Janitorial | $50 |
| Jewelry | $61 |
| Junk Removal | $67 |
| Lawn/Landscaping | $51 |
| Lawyers | $146 |
| Manufacturing | $60 |
| Marine | $88 |
| Massage | $106 |
| Mortgage Broker | $166 |
| Moving | $82 |
| Nonprofit | $50 |
| Painting | $64 |
| Party Rental | $55 |
| Personal Training | $70 |
| Pest Control | $95 |
| Pet | $46 |
| Pharmacy | $57 |
| Photography | $64 |
| Physical Therapy | $94 |
| Plumbing | $90 |
| Pressure Washing | $57 |
| Real Estate | $125 |
| Restaurant | $82 |
| Retail | $55 |
| Roofing | $97 |
| Security | $100 |
| Snack Bars | $48 |
| Software | $95 |
| Spa/Wellness | $110 |
| Speech Therapist | $99 |
| Startup | $72 |
| Tech/IT | $98 |
| Transportation | $95 |
| Travel | $97 |
| Tree Service | $75 |
| Trucking | $111 |
| Tutoring | $61 |
| Veterinary | $116 |
| Wedding Planning | $77 |
| Welding | $77 |
| Wholesale | $62 |
| Window Cleaning | $62 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on errors and omissions policies. Survey results reflect limited sample data from select insurers and may not represent all available rates in your area. Actual rates may vary based on your specific business profile and insurer underwriting criteria.
Errors and Omissions Insurance Cost by State
Your state can make a big difference in errors and omissions insurance costs. We found rates as low as $67 per month in North Carolina and as high as $90 in New York.
| Alabama | $77 |
| Alaska | $70 |
| Arizona | $74 |
| Arkansas | $74 |
| California | $87 |
| Colorado | $77 |
| Connecticut | $84 |
| Delaware | $83 |
| Florida | $84 |
| Georgia | $79 |
| Grand Total | $78 |
| Hawaii | $81 |
| Idaho | $73 |
| Illinois | $85 |
| Indiana | $76 |
| Iowa | $74 |
| Kansas | $75 |
| Kentucky | $73 |
| Louisiana | $88 |
| Maine | $68 |
| Maryland | $74 |
| Massachusetts | $82 |
| Michigan | $73 |
| Minnesota | $73 |
| Mississippi | $78 |
| Missouri | $77 |
| Montana | $77 |
| Nebraska | $73 |
| Nevada | $88 |
| New Hampshire | $77 |
| New Jersey | $88 |
| New Mexico | $78 |
| New York | $90 |
| North Carolina | $67 |
| North Dakota | $68 |
| Ohio | $72 |
| Oklahoma | $73 |
| Oregon | $72 |
| Pennsylvania | $90 |
| Rhode Island | $85 |
| South Carolina | $80 |
| South Dakota | $73 |
| Tennessee | $76 |
| Texas | $78 |
| Utah | $74 |
| Vermont | $75 |
| Virginia | $71 |
| Washington | $88 |
| West Virginia | $81 |
| Wisconsin | $76 |
| Wyoming | $72 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on errors and omissions policies. Survey results reflect limited sample data from select insurers and may not represent all available rates in your area. Actual rates may vary based on your specific business profile and insurer underwriting criteria.
What Affects the Cost of Errors and Omissions Insurance?
A few things drive your errors and omissions insurance costs, from your business type to coverage limits.
Industry and risk level.
Your profession directly impacts premiums because some industries face higher claim risks. A mortgage broker pays more than a graphic designer due to the higher financial stakes in their work. Industries handling sensitive data, large financial transactions or providing professional advice generally see higher rates.
Business size and revenue.
Company size affects costs in two ways: employee count and annual revenue. A solo consultant pays less than a larger consulting firm for similar coverage. Higher revenue often means larger potential claims, which insurers price into your premium.
Coverage limits.
How much protection do you need? Higher limits mean higher premiums, but the cost difference is often reasonable. Doubling your coverage limits adds a modest amount to your monthly premium, usually much less than you'd expect for more financial protection.
Claims history and experience.
Past claims stay on your record and can bump up rates for years, so maintaining a clean record helps keep premiums low. Multiple claims signal a higher risk to insurers, while startups without any claims history usually qualify for standard pricing. Some insurers even reward businesses with long, clean track records through discounts.
Geographic location.
Where you operate matters for pricing. States with high litigation rates or strict professional liability rules cost more to insure. Due to these regional differences, New York businesses pay $23 more per month than those in North Carolina.
How to Get Cheap Errors and Omissions Insurance
Reducing errors and omissions insurance costs includes quick wins, like smart shopping, and long-term approaches, such as risk management strategies.
- 1
Shop multiple insurers.
Every insurance company prices things their own way, so comparing business insurance quotes saves money immediately. You'll find significant rate differences between companies for identical coverage when you get business insurance quotes. Each insurer uses different risk models and appetites for your industry.
- 2
Increase your deductible.
Raising your deductible cuts premiums immediately. You take on more financial responsibility upfront, reducing the insurer's risk. Make sure you can afford your deductible if you file a claim.
- 3
Bundle your coverage.
Many insurers discount multiple policies purchased together. Adding errors and omissions coverage to existing general liability or workers' comp policies triggers bundling discounts. Getting business insurance from one carrier streamlines management while reducing costs.
- 4
Consider professional associations.
Some industry associations negotiate group rates for members. The National Association of Realtors offers group professional liability coverage for real estate professionals. Research whether your association provides insurance benefits before getting business insurance elsewhere.
Insurance companies save their lowest rates for the clients they can count on. Document your procedures, keep your client contracts current and never miss a payment so your track record shows you're a low-risk business owner. Come renewal time, you'll likely see better pricing if you've stayed claims-free and maintained continuous coverage.
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.
Errors and Omissions Insurance Cost: FAQ
Many small business owners wonder about errors and omissions insurance costs. We answered several frequently asked questions:
How much does errors and omissions insurance cost per month?
According to MoneyGeek's study, errors and omissions insurance costs $32 to $193 per month, with an average of $78 per month for small businesses. Costs vary substantially by industry. Mortgage brokers pay the most at $166 per month, while home-based businesses pay the least at $37 per month.
What factors affect errors and omissions insurance pricing?
Your profession has the biggest impact on E&O insurance costs, but business size and revenue, coverage limits, claims history and geographic location also affect your premium.
Is errors and omissions insurance required by state law?
E&O insurance isn't federally required, but many states mandate it for licensed professionals like real estate agents, insurance brokers and accountants. Additionally, some clients and contracts require proof of professional liability coverage before hiring you.
How can I lower my errors and omissions insurance costs?
Comparing quotes from at least three insurers, increasing your deductible, bundling policies and checking professional association group rates lets you get cheaper rates. Maintaining a clean claims history and avoiding coverage gaps helps secure better long-term rates.
What does errors and omissions insurance cover?
E&O insurance covers professional mistakes, negligence claims and failure to deliver promised services. It pays for settlements, legal defense costs and judgments when clients claim your work caused them financial harm, protecting your business assets from costly lawsuits.
Can I get E&O insurance if I'm a new business?
New businesses can obtain E&O insurance and often qualify for standard pricing since they have no claims history to penalize them. Getting coverage early protects you from day one and establishes the continuous coverage history that insurers prefer for future renewals.
How We Determined the Cost of Errors and Omissions Insurance
Small business owners need reliable errors and omissions insurance cost data to budget for E&O coverage without guesswork.
We collected E&O insurance quotes from companies across different states using a consistent business profile:
- Three employees total (including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million aggregate coverage limits
This profile represents established small professional service companies. It's large enough to avoid new business penalties but small enough for competitive rates.
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.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.