I’ll be honest—I didn’t even know what E&O insurance was a few years back. Not until a client threatened to sue me over a missed deadline that, funny enough, wasn’t even my fault. Anyways, I learned fast. Now I always keep a policy.
Errors and Omissions insurance (some folks call it professional liability coverage) is kinda like a safety net for service-based people like me. It kicks in when someone says you messed up—gave bad advice, dropped the ball, or didn’t do what you promised.
What You Might Pay (Don’t Panic Yet)
E&O insurance cost ain’t fixed. Mine was around $800 last year, but yours could be more… or way less. Depends.
You’re probably lookin’ at somewhere between $500 to $2,000 per year, give or take. That’s like $40 to $170-ish per month, depending on what you do and how risky it seems to the insurer.
For example, I got a buddy in real estate, and he pays less than me—he’s at like $650 annually. Meanwhile, a consultant I know (she’s in IT) is paying close to $2,300. Go figure.
TL;DR — riskier the gig, higher the bill.
Sometimes, it’s not just about what you do—it’s where. A designer in New York probably pays more than one in Idaho. Weird but true.
Stuff That Impacts the Price
There ain’t just one thing. It’s like a recipe with five or six ingredients, each one messing with the flavor.
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Your Industry: So yeah, a freelance writer might pay $400/year while an accountant might cough up $2,500. Life ain’t fair.
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How Much You Earn: If you’re making six figures? You’re gonna pay more, likely. More money = more clients = more risk.
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Coverage Limits: A $1M/$2M plan will be pricier than a $250K/$250K one. Obvious, right?
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Deductibles: Wanna save money? Go higher on the deductible. I chose $2,500 out-of-pocket to keep my monthly low.
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Past Claims: If someone’s sued you before, it ain’t a good look. Premium goes up.
And don’t forget where you’re located. A friend of mine in California says it’s brutal out there for premiums.
Can You Pay Less Somehow?
Yup, you can. You gotta be kinda clever, though.
First of all, compare quotes. Like seriously, don’t just go with the first insurance site that looks legit. I checked five before choosing.
You can also bundle policies. I added cyber liability to mine and actually saved a bit. Weird, but I ain’t complaining.
Another trick? Keep your records clean and contracts tighter than a drum. Documentation saves your butt more times than you’d think.
Don’t be afraid of a higher deductible. As long as you got some emergency cash, it ain’t a bad strategy.
And lastly, just don’t get sued. I know—easier said than done. But if you keep clients happy and your work solid, your premiums stay chill.
So Do I Really Need It?
Short version? Yeah, probably.
If your work involves advising people, giving recommendations, building stuff for others, or handling deliverables with deadlines… You need E&O.
I used to think I was too small to get sued. Turns out, small business = easier to sue (people think we’ll settle faster). Wild.
Let me give you real quick examples of why this stuff matters:
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My web dev friend once shipped a buggy site. Client sues him for $15K. E&O covered the lawyer and settlement.
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Another friend—a real estate agent—got sued for supposedly giving “bad advice” about a property. Didn’t even do anything wrong. Still had to defend herself.
Having insurance doesn’t mean you were wrong. It means you’re prepared in case someone thinks you were.
Final Thoughts or Whatever
So yeah, E&O insurance costs money. But not having it? That could cost a whole lot more.
$40 a month to avoid a five-figure lawsuit? That’s math even I can understand.
Honestly, once I got covered, I slept better. It’s just nice knowing I won’t be screwed over a mistake, or even a maybe mistake.
I went with InsureDirect and had a quote in like… five minutes? They actually answered their phones too. (Shocking, I know.)
🔗 InsureDirect.com
📍 618 South Broad Street, Lansdale, PA
📧 contact@insuredirect.com
📞 (800) 807-0762 ext. 602