It’s crucial that your business is covered against liability for any situation. You need to look beyond property and casualty or workers compensation coverage; you need to protect your bottom line against mistakes made by you or your employees. This is where errors and omissions, or E&O, insurance comes in. Read our guide on E&O insurance and learn how to protect your company against mistakes that could cost you big.

What is E&O insurance?

E&O insurance protects your company, your workers, and any other professionals under your employ from litigation as a result of an error. Your E&O provider pays for any judgements or settlements against your company. This insurance is especially important for any business that offers advice or services to their clients.

How much does E&O insurance cost?

The cost of errors and omissions coverage will depend on a number of different factors, but on average costs about $700 per year.

The cost of your premium may depend on:

  • How much inherent risk exists in your industry
  • How many employees you have
  • How much revenue your business makes
  • Your history of previous claims
  • Coverage limits
  • Where your business is located
  • Etc.

How much E&O insurance do I need?

How much E&O insurance your company will need will depend on how much a potential lawsuit could cost you. Try to account for not only the judgement and settlements, but also the costs you could potentially incur defending a lawsuit. An insurance advisor that specializes in errors and omissions coverage will be able to give you a better idea of how much coverage your business will need.

What does E&O insurance cover?

If your company is sued for inadequate work by an aggrieved customer or client, E&O insurance can cover most of the costs involved in litigation.

Errors and omissions insurance typically covers:

  • Copyright infringement
  • Business negligence
  • Deadlines not met by the company
  • Attorneys fees and defense costs
  • Judgements or settlements
  • Financial loss

Is E&O insurance the same as malpractice insurance?

Errors and omissions insurance has different names depending on the industry. Some industries call it malpractice insurance, such as in the medical and legal fields, while others call it professional liability coverage in consulting fields like architecture and accounting. While these policies are similar, they are NOT all the same and not every insurance advisory will offer them all.

Is E&O insurance required?

If your business provides services or gives advice, then you will need to have errors and omissions coverage. Some of your clients may even require it before signing on with your company. Industries that need E&O insurance include accountants, wedding planners, and anyone in the financial services industry.


Do you know how your location can affect how much you pay for errors and omissions insurance? Are you unsure if your business needs E&O coverage? Do you know as a business owner that your company can be protected from copyright infringement and professional negligence claims? Do you know that your industry may require E&O insurance, or even potential clients before they sign a contract with you?

These questions are why it’s imperative to work with an insurance advisor who is experienced with commercial insurance policies and knows how to get you the best E&O coverage at a price that’s right for your business.

All it takes is one mistake and one disgruntled client to cost your business thousands of dollars or more in legal fees and settlements. Can your business afford that kind of a hit?

The insurance advisors at JAISIN will help you determine exactly which coverage you need, search the marketplace for the best carriers, and work to cover your business affordably.

Click or call JAISIN Insurance Solutions today to and chat with our E&O coverage specialists. And don’t forget to ask for a quote!

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