Professional Liability (E&O) Insurance

Geo depth: Class C

Professional liability insurance, also called errors and omissions (E&O) coverage, protects service-based businesses and professionals against claims of negligence, mistakes, or failure to deliver promised services. Requirements and typical coverage limits vary significantly by profession.

Compare Professional Liability (E&O) Insurance rates

What is professional liability (e&o) insurance?

Professional liability (E&O) coverage responds to claims that your professional service, advice, or work product was negligent, contained an error, or failed to deliver what was promised — even if the claim is ultimately without merit, the policy typically covers defense costs as well as any settlement or judgment.

Unlike general liability, which addresses physical injury or property damage, E&O addresses purely financial/professional harm — a client alleging they lost money because of your advice or work — which is why many client contracts for consultants, agencies, and licensed professionals specifically require proof of E&O coverage.

What affects your professional liability (e&o) insurance cost

Typical costs vary significantly by state, provider, and personal factors — {{VERIFY: national average professional liability (e&o) insurance premium not yet sourced}}. Rather than a single number, the factors below are what actually move your quote up or down.

Profession/industry and specific services offered
Annual revenue
Claims history and prior E&O claims
Coverage limits selected (per-claim and aggregate)
Contract terms with clients (some require specific minimum limits)
Years of experience in the profession

How to compare professional liability (e&o) insurance providers

Price is only one part of the decision. Before choosing a provider, compare each of the following side by side:

Coverage limits, and exactly what's included or excluded
Deductible options and how a higher or lower deductible changes the premium
Financial strength ratings from an independent rating agency (e.g., AM Best, S&P, Moody's) — an indicator of an insurer's ability to pay future claims
Customer service and claims-handling reputation, including complaint-ratio data where a state Department of Insurance publishes it
Available discounts and bundling options
Confirmation that the carrier is licensed to write this coverage in your state

Explore professional liability (e&o) insurance by state

Coverage requirements and licensed carriers for professional liability (e&o) insurance vary by state. Here are a few popular starting points, or browse the full state directory below.

Professional Liability (E&O) Insurance FAQ

What's the difference between general liability and professional liability (E&O)?

General liability covers third-party bodily injury and property damage; professional liability (E&O) covers financial harm a client claims resulted from your professional advice, service, or work product. Many businesses carry both because they cover different types of claims.

Is professional liability insurance required by law?

Requirements vary significantly by profession and state — some licensed professions have state-mandated minimum coverage, while many other professions carry it voluntarily or because a client contract requires it. {{VERIFY: your specific profession's state licensing requirement}}.

Does E&O insurance cover intentional wrongdoing?

No — E&O policies are generally designed to cover unintentional errors, omissions, and negligence, not intentional or fraudulent acts, which are typically excluded.

Ready to see professional liability (e&o) insurance options?

Compare providers side by side using the factors above, then see options tailored to your state and situation.