Save up to 30% on business insurance
NerdWallet Small Business helps you get
realtime quotes from 30+ insurers,
and instant access to your Certificate of Insurance (COI) through our partner,
Coverdash.
Jump to
Best business insurance companies
What is errors and omissions insurance?
How E&O insurance works
What doesn’t E&O insurance cover?
Who needs E&O insurance?
How much does errors and omissions insurance cost?
When should you buy E&O insurance?
How much E&O coverage do you need?
Best business insurance companies
Errors and Omissions Insurance: What E&O Is, Where to Get It
Updated Jan 23, 2026
Expert verified
+ 1 more
Errors and omissions insurance protects against claims that your business made a mistake that cost a customer money and time. Your business should have E&O insurance if it provides services to customers for a fee.
Nearly all commercial insurance companies sell E&O policies. Here are some top options based on our editorial team’s picks for the best business insurance.
Chubb
Best for Overall E&O coverage
Pros
- Simple online shopping experience that most businesses can likely complete in a few minutes.
- BOP includes business interruption and extra expense coverage.
- Fewer complaints than expected about liability coverage and far fewer than expected about property coverage.
Cons
- If you have more than $2 million in annual revenue, you'll need to talk with an agent or shop elsewhere.
- Can’t get commercial auto insurance online.
Chubb sells professional liability insurance online to businesses with less than $2 million in revenue. Otherwise, you’ll need to work with an agent. Our editorial team gives Chubb high marks for its financial strength and its shopping experience. It also earned above-average marks for customer satisfaction in J.D. Power's 2025 U.S. Small Commercial Insurance Study.
- General liability insurance.
- BOP.
- Business property insurance.
- Business interruption insurance.
- Professional liability insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
Chubb sells professional liability insurance online to businesses with less than $2 million in revenue. Otherwise, you’ll need to work with an agent. Our editorial team gives Chubb high marks for its financial strength and its shopping experience. It also earned above-average marks for customer satisfaction in J.D. Power's 2025 U.S. Small Commercial Insurance Study.
- General liability insurance.
- BOP.
- Business property insurance.
- Business interruption insurance.
- Professional liability insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
Chubb sells professional liability insurance online to businesses with less than $2 million in revenue. Otherwise, you’ll need to work with an agent. Our editorial team gives Chubb high marks for its financial strength and its shopping experience. It also earned above-average marks for customer satisfaction in J.D. Power's 2025 U.S. Small Commercial Insurance Study.
The Hartford
Best for E&O alongside a BOP
Pros
- Fewer complaints than expected filed with state regulators about both liability and property insurance.
- You can add data breach, professional liability and business income for off-premises utility service coverage to The Hartford's business owner's policy.
- You can add an additional insured and request a certificate of insurance online.
Cons
- No coverage available in Alaska or Hawaii.
- Not all businesses can get a quote online.
If you need E&O coverage and a business owner’s policy, consider buying both from The Hartford. It lets you get them simultaneously. 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.
- Business owner's policies.
- General liability insurance.
- Professional liability insurance.
- Workers’ compensation insurance.
- Commercial property insurance.
- Business income insurance.
- Data breach insurance.
- Commercial umbrella insurance.
- Commercial auto insurance.
- Employment practices liability insurance.
- Liquor liability insurance.
If you need E&O coverage and a business owner’s policy, consider buying both from The Hartford. It lets you get them simultaneously. 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.
- Business owner's policies.
- General liability insurance.
- Professional liability insurance.
- Workers’ compensation insurance.
- Commercial property insurance.
- Business income insurance.
- Data breach insurance.
- Commercial umbrella insurance.
- Commercial auto insurance.
- Employment practices liability insurance.
- Liquor liability insurance.
If you need E&O coverage and a business owner’s policy, consider buying both from The Hartford. It lets you get them simultaneously. 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.
Travelers
Best for Working with an agent
Pros
- Offers many types of commercial insurance, including specialized coverage like key person insurance and surety bonds.
- You can access your certificate of insurance and track your claims through an online portal.
- Fewer complaints than expected about liability coverage and property coverage.
Cons
- You can’t get a quote or purchase a policy online.
Travelers sells policies via independent agents. That means those agents can suggest insurers besides Travelers that better meet your needs. So, if you want professional help, an independent Travelers agent is a great start. Travelers offers coverage tailored to a variety of industries, from accounting to architecture to investment companies.
- General liability insurance.
- BOP.
- Business income and extra expense coverage.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Workers’ comp.
- Cyber insurance.
- Management liability insurance.
- Employment practices liability insurance.
- Umbrella insurance.
- Equipment breakdown insurance.
- Specialized coverage for industries like agriculture and energy.
Travelers sells policies via independent agents. That means those agents can suggest insurers besides Travelers that better meet your needs. So, if you want professional help, an independent Travelers agent is a great start. Travelers offers coverage tailored to a variety of industries, from accounting to architecture to investment companies.
- General liability insurance.
- BOP.
- Business income and extra expense coverage.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Workers’ comp.
- Cyber insurance.
- Management liability insurance.
- Employment practices liability insurance.
- Umbrella insurance.
- Equipment breakdown insurance.
- Specialized coverage for industries like agriculture and energy.
Travelers sells policies via independent agents. That means those agents can suggest insurers besides Travelers that better meet your needs. So, if you want professional help, an independent Travelers agent is a great start. Travelers offers coverage tailored to a variety of industries, from accounting to architecture to investment companies.
Ergo Next
Best for Buying coverage online
If you need coverage quickly, you may be able to buy it from Ergo Next in a matter of minutes. And you may be able to get a discount if you buy other policies through the company. However, you can’t buy retroactive coverage online.
- General liability insurance.
- BOP.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Tools and equipment insurance.
- Commercial property insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
- Liquor liability insurance.
- Product liability insurance.
- Contractor license bonds.
If you need coverage quickly, you may be able to buy it from Ergo Next in a matter of minutes. And you may be able to get a discount if you buy other policies through the company. However, you can’t buy retroactive coverage online.
- General liability insurance.
- BOP.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Tools and equipment insurance.
- Commercial property insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
- Liquor liability insurance.
- Product liability insurance.
- Contractor license bonds.
If you need coverage quickly, you may be able to buy it from Ergo Next in a matter of minutes. And you may be able to get a discount if you buy other policies through the company. However, you can’t buy retroactive coverage online.
Hiscox
Best for Firms with international clients
Pros
- Can get a quote and purchase some policies online.
- Discounts of up to 5% available when you buy two or more Hiscox products, plus a 14-day money-back refund policy.
- Professional liability policies cover work done anywhere in the world.
Cons
- Far more complaints than expected filed with state regulators about both liability and property coverage.
- No coverage available in Alaska; business owner's policies are unavailable in several states.
E&O insurance policies from Hiscox cover work done all over the world, as long as the claim is filed in the U.S. or Canada. Retroactive coverage, which protects your business against claims arising from the period before you bought your policy, may also be available. You’d need to have had insurance from a different provider at the time of the incident to be potentially eligible.
- General liability.
- Professional liability.
- Business owner's policy.
- Cyber insurance.
E&O insurance policies from Hiscox cover work done all over the world, as long as the claim is filed in the U.S. or Canada. Retroactive coverage, which protects your business against claims arising from the period before you bought your policy, may also be available. You’d need to have had insurance from a different provider at the time of the incident to be potentially eligible.
- General liability.
- Professional liability.
- Business owner's policy.
- Cyber insurance.
E&O insurance policies from Hiscox cover work done all over the world, as long as the claim is filed in the U.S. or Canada. Retroactive coverage, which protects your business against claims arising from the period before you bought your policy, may also be available. You’d need to have had insurance from a different provider at the time of the incident to be potentially eligible.
What is errors and omissions insurance?
E&O insurance is coverage for when a client accuses you of errors, oversights or other mistakes that cost them money. Another name for it is professional liability insurance.
Liability insurance protects your business in case it is sued. E&O insurance can cover those legal costs whether or not a lawsuit has merit. It can also pay for settlements, judgements and other damages.
How E&O insurance works
E&O insurance protects your business finances if you're accused of errors or oversights, failure to deliver a service, breach of contract, professional negligence or failure to meet a standard of care.
These policies generally pay out to cover:
- Legal and court costs. This includes attorney fees to deal with a covered claim, which you'll owe 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.
Optional coverages in E&O policies
E&O policies sometimes cover the following scenarios, but they aren’t standard.
- Pre-claims assistance. Some E&O insurance policies will pay out to help you resolve a client issue before it develops into a claim.
- Regulatory or disciplinary proceedings. This covers you if you have to defend yourself to a different organization, like a regulatory body or licensing board.
This protection might cost extra. But if you want it, working with an independent agent is your best bet. That way, you can ask detailed questions to make sure a policy meets your needs.
Look out for a “hammer clause”
If your E&O insurance policy has a hammer clause, the insurance company can insist that you take a settlement offer. Otherwise, you’ll have to fight the case on your own dime.
Sometimes settling a claim is cheaper than going to court. If you’re sued, your insurance company’s lawyer might try to negotiate a settlement. Your policy will pay out to cover it if you accept.
But you might worry how settling a case will look to your customers — even if you don’t officially have to admit fault.
If you have a hammer clause and you decide not to take a settlement, you may have to pay for some or all of the cost of fighting your case. And if you have to pay a judgement later, you’ll be on the hook for that too.
What doesn’t E&O insurance cover?
E&O insurance does not cover illegal acts or purposeful wrongdoing. If the legal system finds that you or an employee did harm on purpose, E&O insurance may not protect you.
Beyond that, many businesses will need policies besides E&O for additional risks. Here are some common ones:
| Risk | Coverage you'll need instead |
|---|---|
| Bodily injury caused by your business or employees | |
| Property damage caused by your business or employees | |
| Data breaches | |
| Employee injuries or illness caused by their work | |
| Discrimination or harassment claims from employees |
Who needs E&O insurance?
If you charge customers for professional services, you should have E&O or professional liability insurance.
Those professions include:
- Accounting.
- Architecture.
- Financial and investment advising.
- Insurance.
- IT consulting.
- Real estate.
Some states or licensing boards require professionals to carry E&O insurance. For example, real estate agents in Tennessee and Rhode Island must have E&O policies to be licensed.
Even if your job doesn’t require E&O insurance, clients may ask for proof that you have it.
How much does errors and omissions insurance cost?
The median E&O insurance policy costs $61 per month, according to online insurance brokerage Insureon
[1]
That said, the cost of E&O insurance can vary widely depending on:
- Whether you’re in a high-risk industry where lawsuits are more common.
- How much coverage you want.
- Whether there's a history of claims against your business.
- Where you do business.
- How many employees you have.
For more nuance, online brokerage Coverdash shared pricing data with NerdWallet in 2025. For businesses with less than $1 million in annual revenue, policies bought through Coverdash fell into these ranges:
- Professional, scientific and technical services: $800-$3,500 per year ($67-$292 per month).
- Technology: $1,300-$2,400 per year ($108-$200 per month).
- Construction (contractors E&O insurance): $1,200-$5,000 per year ($100-$417 per month).
When should you buy E&O insurance?
As soon as you start serving clients for a fee, you should look for E&O insurance. That way, you’re ready in case a claim is filed.
In general, errors and omissions insurance policies are claims-made policies. That means you need coverage in place when a claim is made. Otherwise, the insurer might not cover it.
Already operating? Look for “prior acts coverage.” Insurers can make E&O policies retroactive to a specific date. That means they’ll cover claims of alleged mistakes dating back to that point.
How much E&O coverage do you need?
The amount of E&O coverage you need will depend on:
- Your industry.
- What kinds of clients you serve.
- The size of your company.
Check with your professional association or licensing body for guidance. But a good baseline is to have enough coverage to protect yourself against an unusual year. If you work at a small firm that has never been sued, for instance, carry at least enough to protect yourself against one lawsuit per year.
How to read policy limits
In general, policy limits have two numbers. For example: “1 million / $2 million.”
The first number is the maximum amount your policy will pay out to cover a single claim. The second number is the total amount the company will pay out during the policy period (typically one year).
For most E&O policies, the limit applies to the cost of your legal defense as well as any settlements or judgments you owe.
Let’s say your legal defense is $100,000. A policy with a $1 million limit per claim would have $900,000 left for settlement or judgement costs. If those expenses were $1 million, you’d owe $100,000 out of pocket. This is called “defense within limits.”
You might have the option to buy a “defense outside the limits policy.” This applies your limit solely to a settlement or judgement. So, in our example, your $1 million policy would fully cover the $1 million settlement. The insurance company then pays for your entire legal defense — regardless of how much it costs. These policies are usually more expensive.
Methodology
Business insurance ratings methodology
NerdWallet rewards business insurance companies for reliability and good service. We calculate star ratings based on scores in about a dozen categories. These include:
- Each company's financial strength.
- How many complaints customers made relative to its market share.
- How easy it is to get coverage.
- How accessible customer service is.
Learn more about how we rate small-business insurance companies.
Our editorial team routinely fact-checks and updates these data points. We also adjust our scoring on an ongoing basis. This helps our star ratings reflect changing industry norms. For instance, in 2026, we began evaluating how easy insurers make it to add an additional insured.
Our ratings are a guide. But insurance policy details and prices can vary widely. 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
One key factor in our star ratings is how many complaints insurance companies get. Here's how we arrive at that score.
Disappointed customers can file a complaint with their state's insurance department. The National Association of Insurance Commissioners (NAIC) collects, analyzes and groups complaints by business line and insurance company every year. A business line is a specific type of coverage, like workers’ comp.
Then, the NAIC calculates a complaint ratio for each company. It divides the company's share of complaints by its share of total premiums for each line of business. It then adds these ratio values to their official complaint index.
- A complaint ratio of 1 means a company received about the expected number of complaints relative to its size.
- A ratio of 2 means it received twice as many complaints as expected.
- A ratio of 0 means it received half as many complaints as expected.
NerdWallet obtains the raw NAIC data every year. We aggregate results at the company level and fact-check these results. Then we calculate a three-year average of each insurer's complaint ratio and convert it to a score for our star ratings.
Business insurance star ratings consider complaints about two lines of business: commercial liability and commercial property. We analyze complaint data on commercial auto and workers' comp policies too. But we don't currently incorporate these into our ratings since they're less universal.