Where to Get No Down Payment Errors and Omissions (E&O) Insurance?

Thang Truong
Thang Truong
Updated on:

You’re a business owner. You work hard, but money is tight. You don’t have a lot of money to pay for an annual insurance policy. Where can you get errors and omissions insurance with no down payment? 

Sorry, but no down payment errors and omissions insurance ever exists. Even if you find a company that will accept monthly payments as opposed to paying for an annual policy in one lump sum, they usually require a higher first month’s payment. 

You should be very cautious if you find a company that promises to sell you errors and omissions insurance (also known as professional liability insurance) with no down payment. There are a lot of scams on the internet.

The good news is that there are lots of companies who can sell you errors and omissions insurance with a monthly payment. After the first month’s payment or down payment, you can get a certificate of insurance if you need it. The first payment will be larger, but after that you can pay the same monthly payment for the rest of the year. 

How to Save Money on Errors and Omissions (E&O) Insurance

According to insureon the median cost of professional liability insurance is about $710 a year, or $60 a month. That may seem like a lot, but in our increasingly litigious society, it’s a bargain compared to how much you’ll pay if a client sues you.

That said, how can you save money on errors and omissions insurance?

  • Don’t over-insure yourself. A million dollar limit is enough for most small businesses.
  • Choose a higher deductible
  • Choose a policy that allows monthly payments
  • Minimize your risk
  • Comparison shop. Compare quotes from at least three providers by using online commercial insurance brokers which usually allow you to compare quotes from several providers
  • Look into professional organizations
  • If you can afford it, pay annually since insurance companies usually offer some discount for annual payment

Depending on your industry, there are risks involved. Companies or individuals that have up-to-date licenses, keep up with industry standards, and are associated with professional organizations pay lower premiums.

Professional organizations are a great resource. They can sometimes offer lower rates because they have discounts or group rates. If you have any kind of professional organization, check to see who they recommend. 

Paying all at once, in one lump sum, usually earns a small discount as well. 

Shop and get quotes from many companies before you go with one. Rates vary, and online commercial business brokers such as CoverWallet, Simply Business, or Commercialinsurance.net, can give you quotes from up to three insurance companies, so you can go with the cheapest one. Be sure to consider what is covered as well, though. Sometimes the cheapest insurance doesn’t offer as much coverage or has much lower limits. Still, it pays to shop around. 

>>MORE: Errors and Omissions (E&O) Insurance Costs by Professions

5 Cheap Insurance Companies for No Down Payment E&O Insurance

CoverWallet: Best for Comparing Online Quotes to Get the Cheapest E&O Policy

The only certain way to get the cheapest E&O policy is to compare quotes from several companies. Each company has their own underwriting policy and you don’t know how much an E&O policy would cost you until you obtain a quote from them.

Getting several quotes from several companies can be very time-consuming. A more convenient way is to work with a digital broker like CoverWallet. They work with several business insurance companies and are able to provide you with several quotes in one place after you submit your information in their quote form. After comparing quotes from at least 3-5 companies, you will be able to choose the cheapest one.

E&O for less: Best for Insurance Agents

They have monthly payment options and can provide you with a certificate of insurance as soon as they receive it. They are associated with CNA, NAPA, and 360º Coverage Pros. 

In the case of insurance agents, they can insure the following:

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>>MORE: E&O Insurance for Insurance Agents: Cost and Top 5 Providers

Insurance Bee: Best for Quarterly Payments

Insurance Bee will take your information and generate a quote about 60 seconds later. For our hypothetical accounting business seeking professional liability insurance, they quoted us $765, or four payments of $191.25. If you’re in a different industry, your quote may vary. 

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>>MORE: Notary E&O Insurance: Cost and Top 4 Providers

The Hartford: Best for Real Estate Agents and IT Professionals

The Hartford has specialty professional liability insurance for several professions, such as home inspectors, real estate agents, technology professional, and insurance consultants. For our accounting business in Ohio, they offered us this quote:

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>>MORE: Real Estate E&O Insurance: Cost and Top 5 Providers

biBERK Insurance: Best for Instant Coverage

Biberk insurance will give you a quote, allow you to pay your first monthly payment and then get insured instantly. They provide insurance to your small business directly, without agents or middlemen, making them up to 20% cheaper than other companies. 

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>>MORE: Appraiser E&O Insurance: Cost and Top 5 Providers

>>MORE: Home Inspector E&O Insurance: Cost and Top 4 Providers

Last Thoughts

Business owners have a lot to worry about and a lot to do. Don’t overlook protecting yourself by failing to get errors and omissions insurance. It will protect you in case someone decides to sue you, and as you know, people sue for just about anything these days. Find a basic policy with monthly payments and you’ll be against mistakes.

>>MORE: The Best E&O Insurance Companies

>>MORE: 10 Best Online Payday Loans with Same Day Deposit

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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