Errors and omissions insurance, a type of professional liability insurance, is essential protection for any professional or business that provides services to clients. But while most business owners understand the importance of being covered, one of the first questions they ask is: How much does E&O insurance cost?
The short answer is that pricing varies based on several factors, including your industry, revenue, claims history, and coverage limits. In this guide, we break down average costs, explain what affects your rate, and share tips for keeping your policy affordable.
While it varies widely based on the type of services you provide, on average, E&O insurance typically costs between $30 and $100 per month, or $360–$1,200 per year. The median cost is around $60 per month, or $720 per year. These ranges apply to many small businesses and professionals, though your exact premium may fall above or below this depending on your profession and unique risk profile.
Keep in mind that these numbers are estimates. The true cost of your errors and omissions insurance depends on your business’s characteristics — and the best way to get an accurate idea of your premium is to compare quotes online.
Insurance companies look at a variety of factors and risks when determining E&O insurance cost. By understanding what influences your premium, you can better anticipate where you might fall within the average pricing range — and take steps to find a more competitive rate.
Your profession is one of the biggest cost drivers. Industries that involve high-stakes decision-making, complex advisory work, or regulatory exposure generally face higher premiums. For example, real estate professionals and consultants may pay more for errors and omissions insurance than IT freelancers or marketing contractors because the potential financial impact of a mistake can be greater.
Insurers often use revenue as a proxy for exposure. The more clients you serve or the more money that flows through your operation, the higher your potential liability — and, in turn, your E&O insurance cost. Larger teams or businesses with multiple service lines may also pay more due to increased risk.
Your policy’s limits of liability determine the maximum amount your insurer will pay for a claim. Higher limits provide more protection but come with higher costs. The limits you choose will depend on your line of work and your risk exposure level: if claims and settlements in your industry tend to be high — like financial services and real estate — you’ll want high coverage limits.
Errors and omissions insurance costs vary significantly depending on where you operate. Factors like state regulations, litigation trends, and industry norms can all impact how much errors and omissions insurance costs in your region. For instance, operating in a state with more frequent professional liability lawsuits may lead to higher premiums.
If you’ve had prior E&O insurance claims, insurers may view your business as higher risk. Even one significant claim can raise your premium for several years. On the flip side, a clean claims history signals strong risk management and may help you secure better rates.
Reducing your E&O insurance cost doesn’t have to mean sacrificing protection. With a few strategic decisions, you can keep your premiums budget-friendly while getting the comprehensive coverage your business needs.
Letting your policy lapse — even for a short period — can increase your E&O insurance costs. Continuous coverage signals reliability to insurers and may help you maintain better pricing.
Risk management can help you avoid E&O insurance claims, which in turn leads to lower premiums. No business or professional can rule out the possibility of a lawsuit entirely, but by doing your due diligence, you can help minimize the risk of claims and keep your insurance costs down. Basic E&O risk management strategies can include:
To get the best coverage for your business at the best rate, compare quotes from a number of insurance providers. Some providers, such as Berxi, allow you to get an online quote in minutes.
Working directly with an insurer (rather than through a broker) can reduce fees and commissions that affect your total cost. Direct-to-consumer insurers like Berxi streamline their operations and pass those savings on to customers.
Because every business is different, the only way to know your exact E&O insurance cost is to get a personalized quote. With Berxi, the process is simple — answer a few quick questions, and you’ll receive a clear, upfront price tailored to your profession, revenue, and coverage needs. No phone calls. No guesswork. Get an online quote from Berxi.
The cost of your errors and omissions insurance depends on your profession, industry, revenue, coverage limits, and other factors. Many small businesses pay between $30 and $100 per month for errors and omissions insurance, or $360–$1,200 per year. Get a quote to see how much E&O insurance will cost.
Your profession, revenue, location, policy limits, and claims history play the biggest roles in determining your errors and omissions insurance premium.
Yes, many businesses in lower-risk industries can find basic E&O insurance coverage for under $50 monthly, especially if they maintain a clean claims history and choose lower limits or a higher deductible.
Not necessarily. While newer businesses may face slightly higher rates due to limited operating history, start-ups in low-risk industries can still secure affordable premiums. Strong risk management practices and clear service documentation can help keep costs competitive.
Image courtesy of iStock.com/Liubomyr Vorona
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The views expressed in this article are those of the author and do not necessarily reflect those of Berxi™ or Berkshire Hathaway Specialty Insurance Company. This article (subject to change without notice) is for informational purposes only, and does not constitute professional advice. Click here to read our full disclaimer
The product descriptions provided here are only brief summaries and may be changed without notice. The full coverage terms and details, including limitations and exclusions, are contained in the insurance policy. If you have questions about coverage available under our plans, please review the policy or contact us at 833-242-3794 or support@berxi.com. “20% savings” is based on industry pricing averages.
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Berxi Editorial Team Mar 25, 2025
Lauren Garcia Mar 25, 2025
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