What Is Errors and Omissions Insurance and How Much Does It Cost?

Making a mistake, or just being accused of one, can create legal problems. Errors and omissions insurance may help.
Tina OremSep 23, 2021

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

Errors and omissions insurance is a kind of , and the two terms are used interchangeably in some industries.

There are different types of E&O protections available for small businesses, such as:

Some E&O policies will even cover work done outside of the country.

See how to protect your business quickly:

In general, E&O insurance may cover or reimburse you for some or all of the following:

E&O insurance may not cover:


Professional liability insurance, or PLI, is a specialty coverage that you can’t get under endorsements, in-home business policies or .

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:


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