What Is Professional Liability Insurance?
Professional liability insurance — also called Errors & Omissions (E&O) insurance — protects businesses that provide professional services or advice. It covers claims that your work was negligent, incomplete, or caused financial harm to a client.
Unlike general liability (which covers physical injuries), professional liability covers financial losses your client suffers due to your professional mistakes or failures.
Who Needs E&O Insurance?
- Accountants & CPAs — tax filing errors, missed deadlines
- IT consultants & MSPs — system failures, data loss
- Lawyers — legal malpractice, missed statutes
- Architects & engineers — design errors
- Real estate agents — disclosure failures
- Marketing agencies — campaign underperformance claims
- Software developers — bugs causing client losses
What Does Professional Liability Cover?
- Claims of negligence or failure to perform
- Errors or omissions in deliverables
- Missed deadlines or breach of contract
- Unintentional misrepresentation
- Defense costs (even for frivolous lawsuits)
- Settlements and judgments
How Much Does E&O Insurance Cost?
Professional liability typically costs $500–$3,000 per year for small firms, varying by:
- Industry and specialization
- Revenue and client base
- Coverage limits and deductible
- Claims history
Insura compares quotes from specialized E&O carriers to ensure you get the right coverage at a competitive price.
Compare Top E&O Insurance Carriers
Professional liability (E&O) coverage and pricing depends on your profession. Compare the leading carriers:
- Hartford vs Hiscox — Two top E&O carriers compared
- Chubb vs Hiscox — Premium vs specialist on professional liability pricing
- Markel vs Hiscox — Specialty vs professional liability specialist
- Chubb vs CNA — Premium carriers for professional services
- Progressive vs CNA — Mainstream vs professional specialty
- Best E&O Insurance Carriers Compared — Hartford vs Hiscox vs CNA side by side
Average E&O cost: $50–$150/mo for most professionals. Get your custom quote →
