Estimate your errors and omissions (E&O) professional liability insurance cost based on profession, revenue, years of experience, and claims.
Professional liability insurance — also called errors and omissions (E&O) — protects professionals against claims of negligence, mistakes, or failure to deliver promised services. Whether you're a consultant, accountant, architect, IT provider, or real estate agent, E&O coverage shields your business from potentially devastating lawsuits.
This calculator estimates your E&O premium based on your profession's risk category, annual revenue, years in business, and claims history. Higher-risk professions and larger firms pay more because their exposure to lawsuits is greater. Claims-free history can earn significant discounts.
This is an educational estimate only and should not be treated as an actual quote. Professional liability rates vary widely by carrier, state, and specific practice area. Always work with a licensed insurance broker for accurate quotes. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
A single malpractice or negligence claim can cost tens or hundreds of thousands of dollars in legal defense and settlements. E&O insurance is often required by contracts, professional licensing boards, and clients. This calculator helps professionals budget for this essential coverage and understand what factors drive the premium. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Base Premium = (Revenue / 1,000) × Profession Rate Experience Discount = if years > 5 then 0.90, if years > 10 then 0.85, else 1.0 Claims Surcharge = if prior claims then 1.25, else 1.0 Estimated Premium = Base Premium × Experience Discount × Claims Surcharge
Result: $2,160/year
Base premium: ($300,000 / 1,000) × $8 = $2,400. With 7 years experience (5+ discount): $2,400 × 0.90 = $2,160. No prior claims, so no surcharge. Estimated annual premium = $2,160.
Even the most diligent professionals make mistakes. A missed deadline, an overlooked regulation, or a miscommunication can lead to a client claim that costs thousands in legal defense alone — even if you ultimately win. E&O insurance provides peace of mind and financial protection.
Low-risk professions like marketing consultants and graphic designers typically pay $500-$2,000 per year. Medium-risk professions like IT consultants and real estate agents pay $1,500-$5,000. High-risk professions like architects, accountants, and financial advisors can pay $3,000-$15,000 or more depending on firm size.
Most E&O policies are claims-made, meaning they cover claims filed during the policy period regardless of when the incident occurred (back to the retroactive date). This differs from occurrence-based GL policies. When switching carriers, you may need tail coverage to protect against claims from past work.
E&O covers claims alleging professional negligence, errors, omissions, or failure to perform services as promised. It pays for legal defense costs and settlements or judgments up to your policy limits, even if the claim is groundless.
Any professional who provides advice, designs, or services should carry E&O. This includes consultants, accountants, architects, engineers, IT firms, real estate agents, insurance agents, lawyers, and healthcare providers.
Most professionals carry $1 million per claim / $2 million aggregate. High-revenue firms or those in litigation-heavy industries may need $5 million or more. Your contracts may specify minimum limits.
Yes, in many cases. Malpractice insurance is the common name for E&O in medical, legal, and accounting fields. The coverage concept is identical — protection against claims of professional negligence.
No. General liability covers bodily injury and property damage to third parties, not professional errors. If a client sues because your advice cost them money, only E&O responds. You typically need both policies.
Key factors include your profession's risk level, annual revenue, years of experience, claims history, coverage limits, deductible amount, and the state where you practice. Specialized niches within a profession can also affect rates.