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Average Errors and Omissions Insurance Cost (2026 Report)
Based on our research, errors and omissions insurance costs can range anywhere from $19/mo to $210/mo depending on your industry, state and employee count. Though the vast majority of small businesses pay between $30/mo and $70/mo for coverage.
If you're ready for quotes, get matched to your top errors and omissions insurer below.
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Updated: September 8, 2026
Advertising & Editorial Disclosure
Featured Partner
The Hartford
- The Hartford is MoneyGeek's cheapest professional liability insurer at $45 a month, well below the $56 industry average for a business with one to four employees. Insurers sell the same coverage under the errors and omissions name.
- Policies are written on a claims-made basis, with an extended reporting period available from The Hartford after coverage ends.
- Claims involving negligence, inaccurate advice, missed deadlines and legal defense fall under The Hartford's errors and omissions policy.
- MoneyGeek's 2026 study also ranks The Hartford second overall for professional liability, with the top-rated claims experience.
On The Hartford's site
*MoneyGeek featured partner. Editorial rankings below are independent of this placement. Rates, rankings and savings comparisons are based on MoneyGeek's independent research and Hartford-reported data as of 2026. Figures are estimates and averages, not a guarantee of any individual quote, premium or discount.
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.
Read our full methodology.
Estimate Errors and Omissions Insurance Costs
Below, you can get more personalized E&O cost estimates for your industry by using our business insurance calculator.
E&O Insurance Rate Estimate Calculator
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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 levelYour 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 revenueLarger 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 limitsStandard $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 experienceOne 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 locationHigh-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
Errors and omissions insurance rates vary by 40% to 60% between companies for identical coverage. Compare 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 $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
About Angelique Palenzuela-Cruz
Angelique Palenzuela-Cruz is a Business Insurance Content Writer at MoneyGeek, where she specializes in general liability, workers’ compensation and professional liability insurance. Her work helps small business owners understand how these policies apply to coverage, including risks like customer injuries, employee injuries, professional mistakes, client contract terms and industry-specific coverage requirements.
She primarily covers service-based businesses where liability and employee coverage decisions are especially important, including cleaning, consulting, beauty and wellness, childcare, education, fitness, food service, pet care, repair and maintenance, and other professional services.
Before joining MoneyGeek, Angelique spent nearly 12 years at Guthrie-Jensen Consultants, one of Southeast Asia’s largest management training firms, where she advanced from Training Consultant to Managing Consultant. In that role, she worked with business clients to assess operational needs, develop training programs and present performance analyses to executive decision-makers. She also helped establish Gladwin Training Consultancy, where she served in learning solutions and client service roles.
Her background gives her practical context for writing about how businesses operate, manage client expectations, structure teams and make risk decisions. At MoneyGeek, she applies that experience to business insurance content, connecting coverage to actual business needs.
LinkedIn: linkedin.com/in/ma-angela-cruz
Email Contact: angelique.palenzuela@moneygeek.com