Professional Liability Insurance Cost

Professional liability (E&O) insurance costs $500-$3,000/year for most professionals. By profession: Consultants: $500-$1,500/yr, IT professionals: $800-$2,500/yr, Accountants: $1,000-$3,000/yr, Real estate agents: $300-$800/yr, Lawyers: $2,000-$10,000/yr. Costs depend on industry, revenue, and claims history.

Errors and Omissions (E&O) insurance covers: claims of negligence or inadequate work, failure to deliver promised services, errors in professional advice, missed deadlines causing client losses, and legal defense costs. It protects against financial losses your clients claim resulted from your professional services.

Any business providing professional services or advice: consultants, IT/tech companies, accountants, architects, engineers, real estate agents, insurance agents, financial advisors, marketing agencies, and healthcare providers. If clients rely on your expertise, you need E&O coverage.

Yes, for medical professionals. Medical malpractice is the healthcare industry's term for professional liability insurance. Both cover claims arising from professional errors, negligence, or omissions in the delivery of professional services.

Yes. Without E&O insurance, you pay legal defense costs and any settlements/judgments out of pocket. Even frivolous lawsuits cost $10,000-$50,000+ to defend. A single claim can bankrupt a small business. E&O insurance covers defense costs even for groundless claims.