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LOOKING FOR PROFESSIONAL LIABILITY INSURANCE COSTS?

Professional liability insurance is the more general term for errors and omissions insurance across most small business industries. This report only represents a sub-set of industries that use E&O terminology the most, so if you want a more generalized report covering all small businesses, check out our professional liability insurance cost report.

E&O Insurance Rate Estimate Calculator

Select your general industry area, state and employee count to get an errors and omissions insurance cost estimate tailored to your business. Rates are calculated for a $1 million per claim and $1 million aggregate policy for errors and omissions coverage

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Monthly Rate Estimate—

How Much Does Errors and Omissions Insurance Cost?

The average cost of errors and omissions (E&O) insurance is $60 monthly or $716 per year for most small businesses. This is based on our study of 53 industries that use the term instead of professional liability (more general usage) across all states (including Washington D.C.) and employee counts at or between one and four.

However, this represents only a national average and should only be used as a starting point, not a quote. Your actual small business insurance costs will vary widely depending on your industry, state and employee count for your company.

To estimate average errors and omissions insurance costs, we analyzed quote data from major U.S. small business insurance providers and modeled standardized premium estimates across common professional service profiles. These modeled results are designed to provide a consistent national benchmark and show how premiums vary by key baseline factors including profession type and location.

Dataset Scope and Assumptions

Our cost modeling uses standardized inputs for consistent comparisons across businesses.

  • Providers analyzed: 10 major insurance providers
  • Professions covered: 53 professional service categories that use primarily E&O terminology versus professional liability (arts/media, tech, finance, consulting, marketing and real estate)
  • Geography: all U.S. states (including Washington, D.C.)
  • Employee count bands: 0, 1 to 4, 5 to 9, 10 to 19, 20 to 49
  • Policy baseline: standard errors & omissions (E&O) / professional liability policy with $1 million per claim / $1 million aggregate limits
  • Total estimates modeled: just over 1 million standardized pricing estimates

We also incorporated modeled average revenue, payroll, and claims history personalized across all combinations of states, profession type, and employee counts to improve the accuracy of pricing. To model these assumptions against our cost factors, we used data from these sources:

  • CBP (for employee size class density by state + NAICS)
  • QCEW (for wage/payroll intensity by profession + geography)
  • Economic Census / SUSB (for receipts/output intensity by profession)
  • Calibrated against:
    • Private comp databases
    • IRS SOI totals

How We Calculated Average Errors and Omissions Costs

Our published averages represent modeled premiums for standardized professional service profiles and were aggregated in two ways:

  • National benchmark average: The national average cost reflects the modeled premium for a standardized one to four-employee professional services business across all professions and states included in our dataset for a standard professional liability policy.
  • Segment averages: To show how costs vary, we calculated average modeled premiums for our national base profile and isolated for variables, including:
    • Profession / industry categories
    • States (including Washington, D.C.)

Segment averages were produced by aggregating modeled pricing trends across the full dataset so readers can compare how premiums shift across profession types and regions.

Average Errors and Omissions Insurance Cost by Industry

Errors and omissions insurance costs vary widely by profession anywhere from $19 (notaries) to $210 (financial institutions and banks) a month at the industry level. The vast majority of industries fall below $100 a month (48 out of 53 or 91%) for a 1-to-4-person business and most sit between the range of $30 to $70 a month on average. Particularly, your rate at the industry level will be determined by the financial risk attached to your work. For example, as a group, those in tech, finance and construction hold the highest rates overall while consultants, those in the arts and marketing companies have lower pricing as a group.

Notary Services
$19
$234
Virtual Assistant Services
$25
$303
Art Gallery
$29
$345
Health Coach
$30
$355
Life Coaching
$32
$381
Small Museum
$33
$397
Translation Services
$33
$399
Graphic Design
$34
$406
Independent Publisher
$34
$411
Videography Services
$36
$430
Wedding Photography
$36
$430
Copywriting Services
$37
$443
Podcast Production
$37
$444
Social Media Marketer/Influencer
$38
$459
Digital Marketing
$40
$480
Advertising Agency
$41
$495
Photography
$41
$494
Education Consultant
$42
$504
Marketing Consultant
$42
$504
SEO Consultant
$42
$504
PR Firm
$43
$511
Agricultural Consultant
$46
$555
Research Consultant
$49
$588
Telecom Consultant
$49
$588
Bookkeeping Services
$50
$603
Film/Video Production
$51
$617
Management Consulting
$52
$626
Tax Preparation Services
$54
$652
HR Consultant
$55
$659
Drone Photography/Video
$56
$668
Payroll Services
$58
$701
Environmental Consultant
$59
$704
Real Estate Agent/Realtor
$63
$753
Web Design
$65
$786
IT Consultant
$66
$788
Safety Consultant
$66
$788
Property Appraisal
$69
$830
Accounting Firm
$70
$837
Web Development
$70
$845
Medical Billing Service
$72
$861
Property Management
$73
$878
Mobile App Development
$74
$889
Software Development
$74
$889
Telecom Service
$75
$905
Video Game Development
$75
$905
SaaS Company
$77
$929
Managed Service Provider (MSP)
$79
$954
Home Inspection
$86
$1,033
Bail Bondsman
$105
$1,255
Engineering Consultant
$109
$1,311
Financial Advisor/Planner
$134
$1,612
Mortgage Broker
$139
$1,674
Financial Institutions/Banks
$210
$2,523

Check out more specific guides to errors and omissions costs by general industry area below.

Average Errors and Omissions Insurance Cost By Business Size

Business size is the second most influential factor influencing your E&O rates and pricing at this level ranges from $35/mo for a sole proprietor towards $105/mo for businesses with 20 to 49 employees. The greatest jump is when you hire your first employee, but this growth rate flattens out as your company gets past the four employee mark.

0
$35
$418
1 to 4
$60
$716
5 to 9
$72
$860
10 to 19
$87
$1,039
20 to 49
$105
$1,254

Average Errors and Omissions Insurance Cost by State

Differences in court systems and laws make errors and omissions insurance costs vary by state from $52 to $70 monthly on average. In other words states are no more than $9 different from the median of this distribution, illustrating it's influence being very little compared to other factors. Washington D.C., New York and Pennsylvania make up the three most expensive states for the coverage type while Maine, North Dakota and North Carolina are the cheapest three.

Maine
$52
$628
North Dakota
$52
$626
North Carolina
$53
$630
Alaska
$55
$654
Virginia
$55
$657
Wyoming
$55
$665
Kentucky
$56
$666
Michigan
$56
$676
Minnesota
$56
$675
Nebraska
$56
$672
Ohio
$56
$669
Oklahoma
$56
$673
Oregon
$56
$671
South Dakota
$56
$671
Arizona
$57
$684
Arkansas
$57
$678
Idaho
$57
$678
Iowa
$57
$678
Maryland
$57
$686
Utah
$57
$679
Vermont
$57
$685
Alabama
$58
$698
Indiana
$58
$693
Kansas
$58
$690
Tennessee
$58
$694
Wisconsin
$58
$700
Colorado
$59
$710
Missouri
$59
$706
Montana
$59
$704
New Hampshire
$59
$705
Mississippi
$60
$717
New Mexico
$60
$718
Texas
$60
$725
Georgia
$61
$731
South Carolina
$61
$733
Hawaii
$62
$744
West Virginia
$62
$743
Delaware
$63
$759
Massachusetts
$63
$751
Florida
$64
$773
Connecticut
$65
$775
Illinois
$65
$784
Rhode Island
$65
$779
California
$67
$802
Louisiana
$67
$802
Nevada
$67
$805
New Jersey
$67
$806
Washington
$67
$806
Pennsylvania
$68
$816
New York
$69
$828
Washington D.C.
$70
$835

If you want to investigate location specific costs and factors in more detail, we've left dedicated guides below.

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%.

    briefcase icon
    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.

    smallBusiness icon
    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.

    checkList icon
    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.

    calendarV2 icon
    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.

    pin icon
    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:

  1. 1
    Figure 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.

  2. 2
    Don'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.

  3. 3
    Shop multiple insurers

    Errors and omissions insurance 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.

  4. 4
    Increase 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.

  5. 5
    Bundle 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.

  6. 6
    Consider 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 $234 to $2,523 per year, 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.

If you want to investigate costs for other coverage types

Learn more about errors and omissions insurance

If you want to explore other coverage types

About Connor Bolton

Connor Bolton headshot

Connor Bolton is Senior SEO and Content Manager at MoneyGeek, where he leads the business and pet insurance editorial teams. As editorial lead for both verticals, Connor sets the research framework, data standards, and content structure that his writers execute, directly authoring in-depth guides himself and reviewing all team content for accuracy and practical value before it goes live. With over four years evaluating insurance products across personal, commercial, and specialty lines, he brings cross-vertical knowledge to every guide the team produces.

Connor architected MoneyGeek's insurance research infrastructure across all major verticals including auto, home, renters, life, health, business, and pet, building systems for pricing analysis, provider-level research, customer experience evaluation, and coverage analysis with AI support. The infrastructure includes over 6 million data points for business insurance across 408 industry areas, all 50 states, and 16 vehicle types, and over 5 million pet insurance profiles across 18 major providers and hundreds of breed and age combinations. Connor's insurance cost research and his team's work has been cited by the U.S. Chamber of Commerce, Allstate, Liberty Mutual, CBS News, Forbes and LegalZoom.

Beyond the data, Connor stays connected to how the market actually operates, drawing on direct conversations with underwriters and carrier liaisons at Ethos, The Hartford, NEXT Insurance, Nationwide, and State Farm, and monitoring business and pet owner communities including Reddit, to inform how he interprets findings and frames guidance for real buyers.

He is the direct editorial contact for methodology questions at connor@moneygeek.com and can be found on LinkedIn.

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