E&O Insurance Premium Rate Calculator (2026)
Errors & Omissions (E&O) — also called Professional Liability — covers claims that your advice or service caused financial harm. Premium varies 5-15x by profession risk class.
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Errors & Omissions (E&O) — also called Professional Liability — covers financial damages from claims that your advice or service was negligent, incomplete, or wrong. Premium varies 5-15x by profession risk class. Consultants pay $600-$2,000/year for $1M coverage; lawyers and architects often pay $3,000-$15,000/year. E&O is almost always written on a claims-made basis.
How Premium Is Calculated
Three main drivers. (1) Profession risk class: insurers group professions by historical claim frequency and severity. Lawyers, architects, engineers are top tier (high frequency + high severity). Consultants and coaches are bottom tier. (2) Revenue: bigger revenue = bigger exposure to negligence claims. (3) Limit selection: $1M is baseline. $2M is common for mid-market professionals. $5M+ for larger firms. Most professionals pay 0.5-3% of annual revenue.
Why Claims-Made Structure Matters
E&O is almost always written on a claims-made basis — meaning only claims filed while the policy is active are covered, regardless of when the negligent act occurred. When you switch carriers or retire, your old claims-made policy stops protecting you for past work. Buy tail coverage (Extended Reporting Period endorsement): typically 1-7 years, costing 100-300% of the expiring annual premium. Always include tail in succession planning. Always have continuous claims-made coverage with no gaps — gaps in coverage erase your retroactive date and leave past work uncovered.
Last updated May 2026. Sources: III Professional Liability, NAIC.