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How Much Does Errors and Omissions Insurance Cost?
How much is errors and omissions (E&O) insurance? Average costs for E&O coverage for small business owners ranges from $500 to $1,000 per employee, per year. So, if your business has 50 employees, you can estimate your errors and omissions premium to be between $25,000 and $50,000 annually. Remember that this is only an estimate. Don’t forget that other factors like your location, type of business and claims history will determine your actual rate.
You can get insurance quotes through trusted insurance companies, like us. We’re here to answer your questions and walk you through what each type of business insurance covers. We can also help you choose the right aggregate limit for your coverage.
Determining Your Cost for Errors and Omissions (E&O) Insurance
How much is E and O insurance? Errors and omissions insurance costs can depend on a variety of factors, like your:
- Business’ size, because depending on your number of employees, you may have higher risks. Small businesses typically have fewer employees and lower rates.
- Revenue, because more money can come with a higher risk of lawsuits.
- Industry and the types of risks you face. For example, a construction company may have a higher than average errors and omissions rate because their mistakes can result in property damage.
- Employee training, because teaching your employees how to reduce risk can lower your insurance rate.
- Contracts, because depending on how they’re written, they can either increase or decrease your exposure to liability.
- Location, especially if you’re in a state with higher minimum coverage requirements.
- Claims history, because you can expect to pay higher E&O insurance rates if you have a history of lawsuits.
- Coverage limits, because policies with a higher limit are likely to cost more than policies with lower coverage limits.
What Is Errors and Omissions Insurance?
Errors and omissions insurance is also known as professional liability insurance or E&O coverage. It helps protect the business from lawsuits that claim you made mistakes or omissions in your professional services. If a client or customer sues you, this coverage can help pay your defense costs and legal settlements.
There is no set price for the cost of errors and omissions coverage because it varies from one company to another. Learn more about what errors and omissions insurance coverage is.
What Does Errors and Omissions Insurance Cover?
Errors and omissions insurance can help cover mistakes in your professional services provided to customers. For example, if you own an accounting firm and your financial advice causes them to lose money, this coverage can help pay for any claims they file against you.
Errors and omissions insurance is an important coverage to have. Because even if your business didn’t make a mistake, a client or customer can still sue you. Without coverage, you’d have to pay for these costs out of pocket:
- Attorney fees
- Legal costs
- Judgments
- Settlements
Who Needs Errors and Omissions Insurance?
You should consider errors and omissions insurance coverage if you provide services to clients or customers, like real estate agents or accountants. Some other examples of small businesses that need this coverage include:
- Advertising firms
- Marketing agencies
- Website developers
- Barbershops
- Publishing companies
Get an Errors and Omissions Insurance Quote
To learn more about this coverage and other essential policies, like general liability insurance, obtener una cotización from us today. We’re an insurance company you can trust. In fact, we’ve been helping small businesses get the coverage they need for over 200 years.
Última actualización: 13 de junio de 2022