How much does errors and omissions insurance (E&O) cost?
In 2024, the national median monthly cost of errors and omissions (E&O) insurance for new Progressive Commercial customers was $42. The average rate was $66 per month.
The cost of E&O insurance, which is also known as professional liability insurance, varies based on industry, company size, and more. Understanding how these features affect your E&O insurance rate can help you make informed choices when protecting your business.
You deserve dependable coverage at a fair price. Progressive Commercial offers flexible insurance options that fit your needs and budget. Start an online quote or talk with an expert to learn more.
What factors affect E&O insurance cost?
Insurers consider your business's overall risk when calculating your E&O insurance premium. These factors influence your small business insurance cost:
Industry and profession
Some professions are riskier than others. Jobs such as lawyers and accountants often pay more for E&O insurance because there's a greater possibility of expensive mistakes. Insurers will consider the potential cost of a claim, industry trends, and specific regulations when determining your rate.
Industries and professions with fewer chances of facing a claim will typically have a lower-cost errors and omissions policy.
Business size
The risk of claims can increase when a business grows. As a result, larger companies typically pay more for E&O insurance than smaller ones, even within the same line of work. In some fields, E&O coverage is required per employee, which can also affect your rate. If your team grows, your E&O insurance costs may, too.
Location
The cost of E&O insurance can vary by location because some states have different risks and regulations. Places with more lawsuits or stricter laws might see higher insurance prices, while areas with fewer claims and lighter restrictions can have lower costs.
For example, some states require certain professionals, like real estate agents and insurance agents, to have a certain amount of E&O coverage to practice. These requirements could affect your errors and omissions insurance cost.
Coverage limits
Your coverage limits influence your E&O rate. A policy with a higher limit usually costs more because it offers more protection. By contrast, a lower limit can reduce your premium, but it also gives you less coverage after a claim. You'll want to balance protection with price when getting your E&O policy.
Years in business
Newer businesses might pay more for coverage because they're less experienced. More years in business can demonstrate expertise and knowledge, which could lead to a lower E&O insurance cost.
History of claims
Companies with a history of lawsuits or recent claims might be considered higher risk, resulting in a higher cost of errors and omissions insurance.
Build strong client communication
Setting clear expectations and documenting your processes can help to prevent client misunderstandings that lead to claims. Written scopes of work, recap emails, and project checklists can help serve your customers and protect your business.
How to get cheap E&O insurance
Finding an affordable E&O insurance policy doesn't mean compromising on quality coverage. Consider the following discounts and other ways to save on your E&O insurance cost:
Set higher deductibles
Your deductible is the amount you agree to pay out of pocket if you make a claim on your policy. Choosing a higher deductible is one way to save on your E&O insurance rate. Most insurance companies charge lower premiums for high-deductible plans because you'll cover a larger portion of a potential loss yourself.
Take advantage of discounts
You may be able to lower your E&O insurance costs with certain discounts. For example, Progressive Commercial offers savings on some policies when you pay in full. You can also save if you have other coverages in place. Be sure to ask about available discounts when getting a quote.
Maintain continuous coverage
Coverage with no policy gaps can help you save on E&O insurance costs by showing that you're trustworthy. Continuous coverage also ensures you stay protected from expensive claims.
Follow best practices for your profession
Following best practices can reduce the potential for an E&O insurance claim. In many cases, implementing quality assurance protocols can help prevent mistakes by checking work before it goes to the client.
Why choose Progressive Commercial for errors and omissions insurance
Progressive Commercial has been insuring small businesses like yours for over 50 years. We offer flexible options, competitive rates, and expert service. Get a personalized E&O insurance quote to see your customized rate. You can also speak with one of our licensed agents to find coverage.
