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What Does Errors & Omissions Insurance Cost?

The cost of an E&O Insurance policy depends largely on the specifics of your business (number of employees, type of work you do, years of experience you have) and the deductible you choose (higher deductibles make for lower premiums and vice versa).

Below are rough ballpark estimates of what tech businesses of various sizes can expect to pay for a basic E and O policy. If, after you've read through this, you'd like to know what a policy would cost for your business, you can receive free customized quotes by completing our online insurance application.

Estimated Cost of an Errors and Omissions Insurance Policy for a Small Technology Consulting Company

For a small consulting firm with no more than two fulltime staff members, no more than 10 programmers, and between $250,000 and $1 million in annual revenue, here's a rough estimate of the cost of E and O Insurance:

Sample annual premium: $2,500 – $4,500
Sample deductible: $5,000
Sample coverage limit (per occurrence): $1 million
Sample coverage limit (annual aggregate): $1 million

Note: The policies used to generate these sample quotes include unauthorized access coverage and malicious code coverage but do NOT include coverage for intellectual property incidents.

Estimated Cost of an Errors and Omissions Insurance Policy for a Independent Contractor / Web Designer

For an independent contractor or sole proprietor who brings in no more than $150,000 in annual revenue, here's a rough estimate of the cost of Errors & Omissions Insurance:

Sample annual premium: $1,000 – $1,500
Sample coverage limit (per occurrence): $1 million
Sample coverage limit (annual aggregate): $1 million

Note: The policies used to generate these quotes do NOT include unauthorized access or malicious code coverage. You may need these types of coverage if you offer security services such as firewall and antivirus application services. Including such protections in your policy might increase your premium by about 5 percent. Further, this quote does NOT include coverage for intellectual property liability.

Estimated Cost of an Errors and Omissions Insurance Policy for a Large Consulting Firm

For a large consulting company with six to 10 staff members, 10 to 50 programmers, and $3 to $10 million in annual revenue, here's a rough estimate of the cost of Errors and Omissions Insurance:

Sample annual premium: $14,127
Sample deductible: $5,000
Sample coverage limit (per occurrence): $1 million
Sample coverage limit (annual aggregate): $1 million

Note: The policy used to generate these samples includes coverage for unauthorized access coverage and malicious code coverage but does NOT include coverage for intellectual property liability. It's also important to note that this policy includes a minimum earned premium of 30%, meaning that a business must pay at least 30% of the annual premium even if it decides to cancel the policy shortly after putting it in force.

Get Free Errors & Omissions Insurance Quotes for Your Business

If your business doesn't fit neatly into one of these categories, don't worry: you can receive free, customized quotes for Errors and Omissions Insurance policies by filling out an online insurance application.

Next: How to Avoid E&O Claims

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