Professional Liability (E&O) Insurance Calculator
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About Professional Liability (E&O) Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects professionals who provide advice or services from claims of negligence, mistakes, or failure to deliver promised results. If a client claims your work caused them financial harm, E&O insurance covers your legal defense and any settlements or judgments. Lawyers, accountants, engineers, real estate agents, and consultants are among the professionals who most commonly need this coverage. Many client contracts now require proof of E&O coverage. Premiums vary widely by profession — attorneys and engineers carry significant risk exposure and therefore pay higher premiums than general consultants.
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Frequently Asked Questions
What is the difference between professional liability and general liability?
General liability covers physical injuries and property damage to third parties. Professional liability (E&O) covers financial losses your clients suffer due to your professional mistakes, negligence, or failure to perform services as promised.
Is E&O insurance required by law?
Some licensed professions such as real estate agents, attorneys, and financial advisors are required to carry E&O by their state licensing board. Others may be required by clients under contract.
What is a claims-made policy?
Most professional liability policies are claims-made, meaning coverage applies only if both the incident and the claim occur while the policy is active. You need tail coverage if you cancel or change insurers.
How much E&O coverage do I need?
A $1 million per-claim limit is common for small professional service firms. High-revenue firms or those with large client contracts may need $2–5 million in coverage.
Does experience lower E&O premiums?
Yes, professionals with 5+ years of clean claims history often receive experience discounts of 5–15%. Insurers reward demonstrated track records of professional care and quality work.
Results are estimates only. Actual premiums depend on underwriting factors specific to your business. Consult a licensed insurance professional for an accurate quote.