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E&O Insurance Cost for Different Professionals (2022 Rates)

Errors and omissions insurance is also known as professional liability insurance. E&O provides protection against claims of negligence or mistakes made against you by clients. How much errors and omissions (E&O) insurance costs varies by profession due to the types of liabilities each profession is exposed to. Any profession that gives advice or provides a service should consider E&O insurance. 

How Much does E&O Insurance Cost?

On average, E&O insurance costs $720 – $3,000 a year or $60 – $250 a month. It varies by professions and a few other factors related to the E&O policy such as the maximum coverage amount, which is usually $1,000,000 and the deductibles. The higher the deductibles are, the cheaper the premiums of the policy are.

The table below gives you a sense of how much, on average, E&O insurance costs by professions.

Profession Average annual costRelated Articles
Architects and engineers$1,750Top 5 Providers of Professional Liability Insurance for Architects and Engineers
Financial professionals$400Professional Liability Insurance (E&O) for Consultants, Investment Advisors, and Other Financial Professionals
Home Inspectors$900Home Inspector E&O Insurance: Cost and Top 4 Providers
Appraisers$720Appraiser E&O Insurance: Cost and Top 5 Providers
Notaries$720Notary E&O Insurance: Cost and Top 4 Providers
Insurance Agents$720E&O Insurance for Insurance Agents: Cost and Top 5 Providers
Tech professionals$750Professional Liability Insurance (E&O) for IT Professionals

Please note that these are median averages. The amount someone pays for E&O insurance will vary according to:

  • Coverage limits
  • Deductible
  • Specialty
  • Location 
  • Claims history
  • Insurance company

In other words, you may pay a different amount. 

Different insurance companies always have different prices or costs for you as well. So be sure to shop around with a few companies or a digital broker like CoverWallet or SimplyBusiness to compare quotes before making your final selection.

Here are the top E&O insurance companies for your consideration.

How Much does Errors & Omissions (E&O) Insurance Cost Architects and Engineers?

Architects and Engineers: Any profession that’s responsible for the integrity of a building needs errors and omissions insurance. If a measurement is just a tiny bit off, the whole structure is weakened, and this could lead to disaster. These lawsuits are typically expensive, as in hundreds of thousands, if not millions of dollars. You can also be sued for delays, even if these delays are completely out of your hands. It probably doesn’t surprise you that architects and engineers pay the most for errors and omissions insurance. 

On average, an engineer pays $1,825 a year for an E&O (Errors and Omissions) insurance policy. (or $155 a month). And an architect pays $1,730 a year or $145 a month for a similar policy

Recommendation: Chubb

Chubb serves all fifty states and they provide comprehensive coverage to engineers and architects/designers. You can get up to a $10 million limit, which is great if you’re working with corporate clients. They don’t have online quoting—you have to contact them. 

>>MORE: Top 5 Providers of Professional Liability Insurance for Architects and Engineers

How Much does Errors and Omissions (E&O) Insurance Cost Financial Professionals?

Financial Professionals: They include consultants, investment advisors, financial planners, CPAs, tax advisors, etc. These fields are pretty high risk since you are engaged with other people’s money. When it comes to money, emotions can run high and people can be irrational. Errors and Omissions (E&O) insurance will help protect you from law suits in case your clients are not happy with your services or blame you for their financial loss.

The cost of errors and omissions (E&O) insurance varies by professions. For example, investment advisors on average pay $2,610 a year for an E&O policy; and accountant advisors only pay $400 a year for their E&O policy.

Recommendations: We recommend the best provider for each specific professions below:

  • NAPA: Best for Investment Advisors
  • The Hartford: Best for Accounting Accountants
  • Biberk: Best for Tax Preparers
  • Markel: Best for Financial Advisors

How Much does Errors and Omissions (E&O) Insurance Cost Home Inspectors?

Home inspectors: Some states require home inspectors to have E&O insurance, but even if yours doesn’t it’s a good idea. Home buyers can sue if they discover a problem after they move into a new home and feel you should have told them. On the other hand, if the home inspector notices a problem and the potential buyers back out of the sale, the seller could sue. A handful of states require home inspectors to carry some level of errors and omissions insurance. 

Recommendation: Inspector Pro

Inspector Pro has over fifty years of experience providing insurance to real estate professionals. You’ll simply fill out a short form and someone will get back to you with a quote. If you want, you can fill out a longer form and get approved right away. They have coverage of up to $2 million dollars. 

>>MORE: Best E&O Insurance Companies for Home Inspectors

How Much does Errors and Omissions (E&O) Insurance Cost Appraisers?

Appraisers: Real estate appraisers evaluate how much a home is worth. Since people are emotionally attached to their home, they often overestimate how much it’s worth. They could potentially sue you.

Recommendation: CoverWallet

You can’t beat CoverWallet for quick online quotes. You enter your information and in less than a minute you’re presented with quotes. CoverWallet is an online insurance broker, so you could get quotes from a few companies, which makes comparison shopping very easy. 

>>MORE: Best E&O Insurance Companies for Appraisers

How Much does Errors and Omissions (E&O) Insurance Cost Notaries?

Notaries: You may wonder why a notary needs errors and omissions insurance, since their job involves verifying documents. But what if someone slips you a fake document, or one with a forged signature? Believe it or not, notaries have been sued for mistakes like this. 

Recommendation: National Notary Association

The National Notary Association is a professional organization for notaries. If you get your coverage through them, they can often give you a professional discount. 

>>MORE: Best E&O Insurance Companies for Notaries

How Much does Errors and Omissions (E&O) Insurance Cost Insurance Agents?

Insurance Agents: Since insurance can be considered a type of financial planning, and people are very sensitive about their money, you can see why an insurance agent may need errors and omissions insurance. Something as simple as a typo can inspire a client to sue you for financial loss. 

Recommendation: CNA

CNA sells more errors and omissions policies than any other insurance company. They underwrite for a number of companies, and all of them understand insurance agents and the risks. They’ll give you an online estimate, but to actually buy the insurance you’ll have to call and talk to an agent. 

>>MORE: Best E&O Insurance Companies for Insurance Agents

How Much does Errors and Omissions (E&O) Insurance Cost Tech Professionals?

Tech professions: Most businesses are dependent on technology these days. If any part of technology fails, businesses stand to lose thousands of dollars. If the software you design has a glitch that underestimates an invoice and a company loses money because of it, you could be sued. E&O insurance would protect you and cover your court costs. 

Recommendation: The Hartford

The Hartford can provide you with up to $10 million in coverage, and prior acts are included. They have something called FailSafe, which is specifically for tech professions, and bundles things like security liability, data network liability and intellectual liability all in the same policy. They also have great customer reviews. They don’t have online quoting, though. 

>>MORE: Best E&O Insurance Companies for Tech Consultants

How to Find Cheap E&O Insurance?

Everyone wants a good deal on their E&O insurance: the greatest amount of coverage at the best price. Here are a few tips on how to get the best deal.

  • Shop around—compare quotes from several insurance companies
  • Choose a higher deductible
  • Engage in clear communication with every client so your claims history is clean

Most clients sue not because of mistakes per se, but because of insensitive handling of issues and poor communication. One way to reduce the risk of lawsuits is to provide helpful communication and remain sensitive to client needs. 

Be sure to always shop around with a few companies or a digital broker like CoverWallet to compare several quotes before making your final decision.

>>MORE: The 9 Best E&O Insurance Companies

What is E&O Insurance?

E&O insurance, or also called professional liability insurance, protects you against the claims of negligence, your failure of delivering professional services, and professional mistakes made against you by your clients.

If you are in the business to deliver professional services to your clients, you will need to have an E&O insurance policy to protect you in case your clients decide to sue you. Even you did not make any mistake, when your clients sue you, you still need the E&O policy to pay for any associated legal costs and attorney fees, which can be expensive.

E&O insurance is also called malpractice insurance for healthcare and legal professionals. They are basically the same.

What does E&O Insurance Cover?

E&O insurance covers negligence, mistakes, omissions, and misinterpretations.

For example, if you are a real estate agent, you advised a client to buy a home at a price based on your analysis of a set of 8 recent sales in that area. You omitted another 5 recent sales in the area with much lower prices. This resulted in a higher recommended price than it should have been. After discovering the omissions, your client can sue you. Your E&O insurance policy would help cover all legal fees, defense attorney costs, and settlements as well. Without an E&O insurance policy, you would have to pay everything out of your pocket.

Last Thoughts

Society has become increasingly litigious. You don’t even have to have made any mistakes for a client to drag you off to court, which is stressful and unsettling. Protect yourself by getting at least a basic E&O insurance policy. That way, someone sues for a frivolous reason, your court costs will be covered, and you can rest easy.

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