Errors & Omissions Insurance in California
Professional liability coverage for consultants, contractors & service businesses · (619) 489-3751
What Is Errors & Omissions (E&O) Insurance?
Errors and omissions (E&O) insurance — also called professional liability insurance — protects your business from claims that your professional services caused a client financial harm. If a client alleges you made a mistake, gave bad advice, or failed to deliver your services as promised, E&O covers your legal defense costs and any settlement or judgment against you. General liability insurance does NOT cover these types of claims.
Who Needs E&O Insurance in California?
- IT consultants & technology firms — Software errors, data loss, system failures
- Real estate agents & brokers — Required by California DRE for licensees
- Insurance agents & brokers — CA DOI may require E&O for licensees
- Accountants & financial advisors — Tax errors, financial planning mistakes
- Marketing & PR agencies — Campaign failures, copyright infringement
- Architects & engineers — Design errors, specification mistakes
- Contractors providing design-build services — California design liability exposure
What Does E&O Insurance Cover?
E&O insurance covers claims arising from:
- Professional mistakes or negligent acts
- Failure to deliver services as promised
- Missed deadlines that cause client financial loss
- Bad advice or incorrect recommendations
- Legal defense costs, even for groundless claims
How Much Does E&O Insurance Cost in California?
E&O insurance costs in California vary widely by profession. IT consultants typically pay $800–$2,000/year for $1M in coverage. Real estate agents pay $400–$1,500/year. Higher-risk professions like architects or financial advisors pay more. Ready Lane works with specialty markets to find competitive E&O rates for California businesses and professionals.
E&O vs. General Liability — What’s the Difference?
General liability (GL) covers physical injury and property damage — if someone is hurt at your office or you damage a client’s property. E&O covers financial harm from professional mistakes. Most California businesses that provide professional services need both GL and E&O. Ready Lane can bundle both policies to save on premium. Call (619) 489-3751 or get a quote below.
Related Professional and Business Insurance
E&O insurance pairs well with: General Liability Insurance, Cyber Insurance California, Umbrella Insurance Chula Vista, and Workers’ Compensation California.
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