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Best Errors & Omissions Insurance of 2022

Bryan Keith

If your business provides advice or service to clients, you know that mistakes can happen. Protect your business from claims of negligence with errors and omission insurance. We’ve evaluated the best errors and omission insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Offers a range of insurance poilicies

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Simply Business provides insurance policies for a range of professions and small businesses.

What we like

  • Various business insurance policies
  • Quotes from multiple providers
  • Fast and easy application
  • Strong customer satisfaction

What we don't

  • Policies are a through a third party
  • Claims must be filed through insurance provider

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

eCommerce-only insurance solution

$2,000,000

Coverage Up To

$0 - $5,000

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is errors and omissions insurance?

Errors and omissions (E&O) insurance is a type of professional liability coverage. It protects companies from claims of negligence or unsatisfactory work, and it can help cover the legal fees – whether you are at fault or not. Another example is if you miss a deadline for a shipment, which causes your client to lose money, E&O insurance can cover the cost of damages.

Who needs errors and omissions insurance coverage?

Anyone who provides advice or service to clients requires should consider E&O insurance. This includes (but is not limited to):

  • Financial advisors
  • Lawyers
  • Doctors
  • Insurance agents
  • Wedding planners
  • Real estate agents
  • Home inspectors
  • Contractors

Even if your company did not do anything wrong, the costs of legal fees in the event you are sued can still be enough to cause a financial burden.

What does errors and omissions insurance cover and exclude?

E&O insurance coverage can be divided into four primary areas:

  • Accusations of negligence: If you or any employee in your organization fails to adhere to industry standards, a client could accuse you of negligence and sue you.
  • Work mistakes and oversights: Even small mistakes can have detrimental effects on your business. Failure to inform a client of regulation can have huge negative impacts on them, which you could be held liable for damages.
  • Undelivered services: Failure to deliver a product, complete a service, or fulfill a business contract can cause your client to suffer lost revenue and could to sue your business for loss of money.
  • Missed deadlines: If your business fails to deliver a product or a service by a predetermined deadline, your client could have suffered lost income or revenue due to not having the product in time.

The date the policy was enacted, and the date of the incident can affect coverage under E&O insurance. Two important numbers are the retroactive date and the extended reporting period. E&O insurance only helps cover claims if they are reported within the appropriate time frame and occurred on or after the retroactive date.

  • Retroactive date: This is the date you are covered after. Incidents that go back prior to this date may not be covered.
  • Extended reporting period: Claims may only be covered if they are reported in a certain timeframe, often 30 to 60 days. This timeframe can be extended to a year for an additional cost.

There are certain areas that are not covered by E&O insurance, including:

  • Illegal acts and intentional wrongdoing to your customers
  • For bodily injury or property damage, you’ll need a general liability insurance policy.
  • You will need a workers compensation policy to cover employee injuries or illnessess.
  • Discrimination or harassment in the workplace.
  • You will need cyber security insurance to cover data breaches

What are the limits of errors and omissions insurance?

The limit for a smaller business with assets under $1 million is typically around $1,000,000 in coverage per claim. Larger businesses frequently carry $5,000,000 to $10,000,000 in coverage.

How much does errors and omissions insurance cost?

Many factors go into determining the cost of your policy and the amount of coverage. Several factors include (but not limited to):

  • Location
  • Industry
  • Type of work performed
  • Previous litigation claims

Average costs for E&O coverage are usually $500 to $1,000 per employee, per year.

How to choose the best errors and omissions insurance?

When looking for the best E&O insurance, here are some key factors to consider before you make a purchase:

  • Read the fine print: Mistakes can be costly. You should read the terms and conditions to ensure that you take out adequate coverage for legal proceedings. Be aware of any exclusions that can apply to your specific policy. This can help to avoid rejection when filing an insurance claim, and finding out that your business is not covered.   
  • Compare costs: Looks at the premiums and deductibles versus the coverage of multiple plans. Determine how much coverage you need, and what you can afford to pay for that coverage.
  • Customer feedback: Look for postive customer feedback on your insurance provider to ensure they have your best interests.