About $88 a month
Professional liability, all industries
Insureon median for its small-business customers ($1,051 a year), updated October 21, 2026
Coverage guide
Professional liability insurance (E&O)
For consultants, IT and design firms, accountants, real estate agents and other businesses paid for advice or expertise: what E&O covers, the rules that require it and what it costs.
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What similar businesses pay
- Professional liability, all industries
- About $88 a month
- Standalone professional liability
- About $76 a month
- Professional liability median
- About $25 a month
Published benchmarks, not quotes. Your price depends on underwriting.
Cost
What professional liability insurance (E&O) costs
About $76 a month
Standalone professional liability
The Hartford typical customer cost, updated April 11, 2025
About $25 a month
Professional liability median
NEXT customer median, data updated August 2025
About $144 a month
Architects and engineers
Insureon customer average, updated October 21, 2026
Price follows how much money a mistake could cost your clients. Insureon’s customers pay a median of $88 a month: 43% pay under $75 and 28% pay $75–$150, with annual premiums from about $400 to over $7,000. Photographers and accountants average about $42 a month there, while architects and engineers average $144. NEXT reports a median of $25 a month across its customers, with 73% paying $45 or less. Most Insureon customers (56%) choose $1 million per claim and $1 million aggregate, and the average deductible is $2,500. A solo consultant with small contracts should expect the low end; firms whose errors can delay projects or move large sums of money pay more.
What moves your price
- Profession: on Insureon, architects and engineers average $144 a month while photographers and accountants average about $42.
- Limits and deductible: limits range from $250,000 to $2 million or more.
- Revenue and the size of your largest contracts.
- Number of employees giving advice or performing services.
- Years in business and claims history.
- Location: Insureon’s state medians range from $78 a month in North Carolina to $99 in Virginia.
Who it’s for
Who needs professional liability insurance (E&O)
A client says your advice cost them money
A consultant’s recommendation underperforms, an accountant makes a filing error or a designer’s plan fails code review. The Insurance Information Institute lists negligence, misrepresentation and inaccurate advice as claims general liability does not cover but E&O does.
A missed deadline or failed delivery
A late software release, a missed filing date or a delayed project can cost a client revenue, and the client may sue you for it even when the delay was not entirely your fault.
A client alleges breach of contract
Disputes over whether you met the terms of an engagement often turn into lawsuits. Insureon notes E&O can respond when a client sues over a contract breach tied to your services.
The claim has no merit but still needs a defense
The Insurance Information Institute notes E&O pays legal defense costs even when there has been no wrongdoing.
A contract or license requires it
Clients often ask for a certificate of professional liability insurance before signing or starting a project, and some states require coverage for licensed professions such as lawyers and real estate brokers.
Coverage
What professional liability insurance (E&O) covers
Negligence and errors
Claims that your work fell below the standard expected of your profession, including mistakes and oversights that caused a client financial harm.
Misrepresentation and inaccurate advice
Claims that you gave wrong information or advice that a client relied on to its loss.
Good faith and fair dealing
Allegations that you violated the duty of good faith and fair dealing in a client relationship.
Defense, settlements and judgments
Attorney fees and court costs plus settlements or judgments against you, up to the policy limit.
Prior acts
Many policies cover work done before the current policy started, as long as it was done after the retroactive date on the policy.
Extended reporting period
Tail coverage for claims made after a policy ends. Insureon says insurers often include 30 or 60 days free and sell one to five years, typically for 100% to 300% of the final premium.
Other costs
Some policies also pay other fees, such as licensing board penalties, according to the Insurance Information Institute.
What it doesn’t cover
- Bodily injury and property damage to clients, which general liability covers (medical malpractice is the exception).
- Injuries to your employees, which workers’ compensation covers.
- Harassment, discrimination and wrongful termination claims by employees.
- Intentional, dishonest or illegal acts.
- Injury or damage caused by a product you sell or make.
- Losses that are not financial.
- Claims made after the policy lapses, unless you have an extended reporting period.
Rules
Requirements and filings
Most professions are not required by law to carry E&O, but some state licensing rules and many client contracts are. These examples show the range.
| Requirement | Applies to | What it means |
|---|---|---|
| Oregon Professional Liability Fund | Active Oregon State Bar licensees in private practice with a principal office in Oregon | PLF coverage is a condition of the law license; the 2026 plan’s limit is $300,000 per coverage period plus a $75,000 claims expense allowance. |
| Idaho Bar Commission Rule 302(a)(5) | Active and house counsel Idaho lawyers who represent private clients | At least $100,000 per occurrence and $300,000 annual aggregate; the bar must be told within 30 days if coverage lapses. |
| Colorado real estate E&O (C.R.S. 12-10-204) | Colorado real estate broker licensees, except inactive brokers and some attorney licensees | E&O insurance must be maintained, either through the state’s group policy or an independent policy meeting the Division of Real Estate’s minimums. |
| Client and vendor contracts | Consultants, IT firms, designers and other service providers | Clients often require a certificate of professional liability insurance before signing or starting work; the contract sets the limit and any other terms. |
Compare professional liability insurance (E&O) options.
One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.
Pay less
How to lower the cost
- Pay the annual premium up front if the insurer offers a discount for it.
- Choose a higher deductible you can carry; Insureon customers average $2,500.
- Match limits to what your contracts actually require rather than buying more by default.
- Ask whether your insurer can add professional liability to a business owner’s policy as an endorsement.
- Use written scopes of work and keep records of advice and approvals to defend claims and keep your record clean.
- Keep coverage continuous; with a claims-made policy, a lapse can leave past work uncovered.
Before you start
What underwriters ask for
- A description of the services you provide and revenue from each.
- Professional licenses, certifications and years of experience.
- Annual revenue and the size of your largest contracts.
- Number of employees and contractors performing professional work.
- A sample client contract and the limits it requires.
- Your current policy’s retroactive date, if you have one.
- Past claims and any known incident that could lead to one.
Common questions
Professional liability insurance (E&O): questions
Is professional liability the same as errors and omissions insurance?
Yes. Errors and omissions, or E&O, is another name for professional liability insurance. Malpractice insurance for doctors and lawyers is a specialized form of it.
Is professional liability insurance required by law?
Usually not. It is required for some licensed professions in some states, such as Oregon and Idaho lawyers and Colorado real estate brokers, and many client contracts require it.
What does claims-made mean?
Most E&O policies are claims-made: the policy must be active both when the mistake happened and when the claim is filed. If coverage lapses, claims about past work may not be covered.
What is tail coverage and when do I need it?
Tail coverage, or an extended reporting period, lets you report claims after a claims-made policy ends. It matters when you retire or switch from a claims-made to an occurrence policy. It does not cover new mistakes made after the policy ends.
Does general liability cover professional mistakes?
No. General liability covers bodily injury, property damage and advertising injury. Financial losses from your advice or services need professional liability.
How much professional liability coverage do I need?
Start with what your contracts require. Among Insureon customers, 56% choose $1 million per claim and $1 million aggregate and 11% choose $2 million and $2 million.
Does E&O cover a client who is injured at my office?
No. Client injuries and property damage fall under general liability; professional liability covers financial harm from your services, except for medical malpractice policies.
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Sources (11)
- Insureon: professional liability insurance cost (updated October 21, 2026)
- Insureon: professional liability insurance (updated October 21, 2026)
- Insureon: extended reporting period (updated July 24, 2023)
- The Hartford: professional liability insurance cost (updated April 11, 2025)
- NEXT: how much does professional liability insurance cost (data August 2025)
- Insurance Information Institute: professional liability insurance
- Insurance Information Institute: small business insurance basics
- Oregon State Bar Professional Liability Fund: what is the PLF
- Oregon PLF: 2026 primary coverage plan
- Idaho State Bar: malpractice coverage requirement
- Colorado Revised Statutes 12-10-204: errors and omissions insurance required
Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.