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Errors and Omissions Insurance: What E&O Coverage Is, Where to Get It

Making a mistake, or just being accused of one, can create legal problems. Errors and omissions insurance may help.
By Tina Orem
Last updated on January 3, 2023
Edited byRyan Lane

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⏰ Estimated read time: 6 minutes

Errors and omissions insurance, also called E&O insurance, protects businesses against claims of mistakes, negligence, inadequate work, inaccuracies, misrepresentation or similar allegations.
Your business should have E&O insurance if it provides services to customers for a fee.

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What is errors and omissions insurance?

E&O insurance is business insurance coverage that protects your company if someone accuses you of making a mistake.
Errors and omissions insurance may cover you if you’re accused of the following:
  • Errors or oversights in your work.
  • Failure to deliver a service or missed deadlines.
  • Professional negligence or failure to meet a standard of care.
  • Breach of contract.
Errors and omissions insurance is a kind of professional liability insurance, and the two terms are used interchangeably in some industries.
Tivly works with over 200 insurance providers, matching you to the one who fits your needs!

Where to get E&O insurance

Errors and omissions insurance is a common type of coverage that all major commercial insurers offer. Start your search with these companies.

Next Insurance


NerdWallet rating 
Best for: Getting a quote and buying an E&O policy online in minutes.
If you need coverage quickly, you may be able to buy it from Next in a matter of minutes. Next’s E&O insurance policies start at $19 per month, and you may be able to get a discount if you buy other policies through the company. Read NerdWallet’s review of Next Insurance.

The Hartford


NerdWallet rating 
Best for: Adding E&O coverage to a business owner’s policy.
If you need E&O coverage alongside a business owner’s policy, consider buying both from The Hartford, which allows you to tack E&O coverage onto a BOP. You can get an E&O insurance quote from The Hartford online, but you may have to talk to someone on the phone to complete your purchase. Read NerdWallet’s review of The Hartford business insurance.

State Farm


NerdWallet rating 
Best for: Working with an insurance agent.
If you want a professional to handle your business insurance for you, you can enter your ZIP code on State Farm’s website and a local agent will contact you. That agent can help you get a quote and purchase E&O insurance, among other policies. State Farm earned a lower star rating from NerdWallet than other providers because customers have filed a higher-than-expected number of complaints with state regulators — but the company topped the customer satisfaction ratings in J.D. Power's 2022 U.S. Small Commercial Insurance Study. Read NerdWallet’s review of State Farm business insurance.
NerdWallet recommends getting business insurance quotes from several companies so you can compare costs and coverage details.

🤓 Nerdy Tip

If you need insurance for a home-based business, note that you can’t get errors and omissions insurance under homeowners insurance endorsements or in-home business policies. You’ll need to buy a separate policy.

What does errors and omissions insurance cover?

If someone files a lawsuit against your business, E&O insurance can pay out to cover:
  • Legal and court costs. This includes attorney fees and other costs a business must pay to deal with a covered claim, whether or not the legal system finds you at fault.
  • Settlements or judgments owed. If the business owner is found to be at fault, errors and omissions insurance can help with these payments.
  • Damages and expenses. Your business might have to pay these if it infringes on someone else’s copyright, for instance.
Some E&O policies will even cover work done outside of the country.

What doesn’t E&O insurance cover?

E&O insurance may not cover:
In general, errors and omissions insurance policies are claims-made policies, which means coverage must be in place at the time a claim is made in order for the insurer to cover it. If your coverage lapses, you’ll no longer be protected.
E&O insurance policies can be retroactive to a specific date defined in the policy. That means they’ll cover claims of alleged mistakes dating back to that point, but not before.

Who needs errors and omissions insurance?

If you provide professional services to customers for a fee, you should have some form of errors and omissions insurance.
Those professions might include:
  • Accounting.
  • Architecture.
  • Financial and investment advising.
  • Insurance.
  • IT consulting.
  • Real estate.
Some professionals are required to carry E&O insurance, whether it’s by law, licensing boards or professional associations. For example, Tennessee and Rhode Island both require real estate agents to have E&O policies in place in order to be licensed.
Clients may also ask for proof that you have E&O insurance and decline to work with you if you don’t provide a certificate of business insurance.

How much does errors and omissions insurance cost?

The cost of E&O insurance varies. For example, insurance provider The Hartford estimates that business owners spend an average of $500 to $1,000 per employee per year on E&O coverage.
How much this insurance will cost you depends on several things, including:
  • Whether you’re in a high-risk industry.
  • How much coverage you want.
  • Whether there's a history of liability claims against your business.
  • Where you do business.
  • Number of employees.
To find out how much business insurance will cost for your company, get quotes from several insurance providers.

Frequently Asked Questions


Business insurance ratings methodology

NerdWallet’s business insurance ratings reward companies that offer small-business owners reliability and ease of use. Ratings are based on weighted averages of scores in several categories, including financial strength, customer complaint data, shopping experience and customer service. Learn more about how we rate small-business insurance companies.
These ratings are a guide, but insurance policy details and prices can vary widely from business to business and provider to provider. We encourage you to shop around and compare several insurance quotes.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2021.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period.
Our star ratings consider ratios for both general liability insurance and commercial property insurance. When an insurer sells policies that are underwritten by several different insurance companies, we consider the NAIC complaint ratios of all the underwriters.
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