Errors & Omissions Insurance in California

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.

We write the rest of your business coverage too. See commercial insurance in Chula Vista.

Who Needs E&O Insurance in California?

• IT consultants & technology firms — Software errors, data loss, system failures
• Real estate agents & agencies — Required by California DRE for licensees
• Insurance agents & agencies — 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.