Typical E&O premiums
Professional liability, also called errors & omissions (E&O), covers claims that your professional advice or services caused a client a financial loss. Pricing depends on profession, revenue, and limit.
| Profession | Typical annual premium |
|---|---|
| Management / marketing consultant | $600 – $1,500 |
| IT services / software developer | $900 – $2,500 |
| Bookkeeper / accountant | $700 – $1,800 |
| Real estate agent / property manager | $900 – $2,200 |
| Physical or occupational therapist | $500 – $1,200 |
| Home health agency | $1,200 – $4,000 |
| Engineer / architect | $2,000 – $6,000 |
Claims-made and the retro date
Almost all E&O is written claims-made: the policy that responds is the one in force when the claim is made, not when the work was done. Your retroactive date determines how far back prior work is covered. Never let a retro date reset when you switch carriers — that quietly erases coverage for everything you have already delivered.
If you cancel or retire, buy an extended reporting period (tail). Tails typically cost 100–200% of the annual premium for one to three years of reporting.
What it covers — and what it does not
E&O covers negligence, errors, omissions, missed deadlines, and failure to deliver promised professional results, plus defense costs. It does not cover bodily injury or property damage (that is general liability), intentional wrongdoing, or data breach response (that is cyber). Many small firms buy E&O and cyber on a combined form because a single incident often triggers both.
Frequently asked questions
Do I need professional liability if I already have general liability?
If you give advice, design, consult, or provide professional services, yes. GL excludes financial loss caused by your professional work, which is exactly the claim most service firms face.
What is a retroactive date?
The earliest date of work covered by a claims-made policy. Keeping the original retro date when you change carriers is the single most important detail in an E&O renewal.
Do clients require E&O?
Increasingly yes. Technology, consulting, and healthcare contracts commonly require $1M–$2M in professional liability with the client shown as certificate holder.