By the General Liability Guide Editorial Team. Our guides are verified against actual insurance carrier rate sheets and state industrial commissions.
If you provide advice, design, or professional services, your biggest risk isn't a physical accident—it's a financial mistake. E&O insurance is designed to protect your bank account when a client claims your work cost them money.
What E&O Covers
- Negligence: Mistakes made during a project.
- Misrepresentation: Promising results you didn't deliver.
- Violation of Good Faith: Breach of contract due to expertise failure.
Typical costs for a small IT consultant or marketing agency range from $600 to $1,800 per year.
Frequently Asked Questions
Yes, these terms are used interchangeably in the commercial insurance industry.
About This Guide
This guide was researched and written by the General Liability Guide editorial team to help business owners navigate the complexities of commercial insurance. We use data from industry leaders and regulatory filings to provide the most accurate estimates possible.