So here’s the deal, I’ve been asked a bunch of times about errors and omissions insurance (most folks just say E&O). People always wanna know, like—what’s it gonna set me back? The honest answer is, it’s kinda messy, not one-size-fits-all.
I mean, think about it. You screw up a client project, or you miss a deadline, or you give the wrong advice (been there, not fun)—next thing, somebody’s threatening to sue. That’s when this insurance jumps in. But the price? That’s where things get tricky.
Quick what-it-is
E&O is basically the safety net if a client says “hey you messed up, and it cost me money.” It pays for lawyers, court stuff, maybe a settlement. Without it—you’re cooked. With it—you’re stressed, sure, but you ain’t bankrupt.
Some people call it professional liability insurance. Same thing, different name.
What I’ve seen it cost
Now, from what I’ve seen (and yes, I’ve dug around, asked peers, looked at quotes), you could be paying like $500 a year, or it could be five, six grand. Wild spread, right?
Freelancers? They usually slide by cheaper. A designer buddy of mine pays around $450 a year. A tech consultant I know drops closer to $2,000. My own quote last year was just under $1,200, and honestly I thought it’d be higher.
Ballpark:
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Small solo folks: maybe 400–800 bucks.
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Small biz with a handful of employees: 800–1500 range.
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Bigger firms: 2K–5K, sometimes higher.
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High-risk fields (finance, legal, health): 3K–10K+.
And that’s just premiums. Deductibles, coverage limits—whole other rabbit hole.
Why so different?
Every insurer has their own math. But the main knobs they turn are:
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Industry. Tech consultants, real estate, healthcare… all priced different. Finance guys usually pay through the nose.
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Revenue. More money flowing through your biz, bigger target on your back.
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Location. Some states are sue-happy. Others not so much.
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Coverage limits. $1M/$2M is common. If you want more protection, get ready to cough up more cash.
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Deductible. Higher deductible, lower premium. Basic insurance logic.
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History. If you’ve been sued before, well, the carrier won’t love you.
Some examples I came across
IT consultant? Around $600–$2,500 yearly.
Realtor: maybe $800–$2,000.
Financial advisor: usually at least $1,500, I’ve seen $5,000+.
Doctors? Don’t even ask, it’s brutal.
Marketing freelancers like me: $400–$1,200 depending how risky they think you are.
Can you cut the bill down?
Yep, couple of ways:
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Compare quotes. First one you get is rarely the cheapest. I’ve seen $700 difference between two companies for the exact same coverage.
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Bundle it. If you already carry general liability or a business owner’s policy, tack this on—discounts happen.
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Keep a clean record. If you don’t rack up claims, you look less risky, and your premium usually goes down over time.
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Play with the deductible. I once upped mine from $1,000 to $2,500 and it shaved a couple hundred off the yearly premium.
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Don’t over-insure. If you don’t need extras like cyber liability, skip it.
Worth the money or nah?
I used to think, eh, maybe I can wing it without E&O. But then I saw a buddy cough up close to $40,000 in legal fees just fighting a lawsuit. He won the case—still lost money. That’s the kicker.
Average defense for one of these things? $30K–$100K easy. Versus a thousand bucks a year for coverage. I’ll take the insurance bill, thanks.
My two cents
At the end of the day, E&O cost isn’t just about numbers. It’s about peace of mind. Like, yeah, I could save that grand and gamble that nobody sues me. But I sleep better knowing I got that shield.
So if you’re a consultant, agent, designer, coach, whatever—any field where your advice or service could cost someone money—this coverage matters.
Some pay $500, some $5,000. Just depends on your world. But whatever you spend, it’s usually cheaper than one lawsuit.
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