The Best Public Errors and Omissions Insurance

The key to understanding the best insurance products is to sit down and talk with the brokers who sell these products every day. They understand best what clients need, and which products offer the best coverage for different situations.

Insurance Business America has engaged the country’s top brokers in one-on-one interviews and surveys to determine the leading Public Errors and Omissions (E&O) products. IBA’s inaugural Five-Star Excellence Award in Public E&O celebrates companies not only with outstanding product offerings, but also first-class broker support and industry knowledge. The Five-Star Excellence Award allows brokers to understand the partners their peers have chosen to present to clients – giving you an upper hand when selecting insurers to work with.


Determining America’s top insurance products takes a keen understanding of the market offerings – that is why IBA has enlisted the help of thousands of brokers to determine the 2021 Product Awards. Read more about how we determined our winners here.

5-Star Excellence Awards

  • AIG
  • Allied World Assurance Company
  • CFC Underwriting
  • Chubb
  • Hiscox
  • Markel American Insurance Company
  • RSUI

What is public errors and omissions (E&O) insurance?

Errors and omissions (E&O) insurance is a form of professional liability coverage that protects companies against the costs of a claim made by a client against professionals who give advice or particular services. These professionals include consultants, financial advisers, insurance brokers, and legal and medical practitioners.


A policy’s cost is determined by a range of factors, including the nature of the business, where the business is located, and claims that have been paid out previously.


Depending on the contract, E&O insurance may provide cover for temporary employees, claims resulting from events before the policy was in force, or claims in different jurisdictions. E&O policies do not protect against costs stemming from criminal prosecution and liabilities arising from civil lawsuits.


What is the purpose of public E&O insurance?

Errors and omissions (E&O) insurance, also called professional liability insurance, provides public companies, including government agencies, schools and educational institutions, and other professional services groups, protection against claims of inadequate work or negligent behavior. Policies typically cover for legal expenses stemming from litigation and settlement, thereby giving public companies some form of financial cushion.


How much does E&O insurance for public companies cost?
The cost of E&O policies depends on a range of factors, all of which have an influence on the level of risk exposure a public company has. This includes a firm size, revenue, where it is located, and the industry it is in. The kind of employee training and how their contracts are written also impact the premium prices. Previously paid out claims and coverage limits are among the price determinants for errors and omissions insurance as well.


On average, E&O coverage range from between $500 and $1,000 per employee annually. Many major insurance providers offer coverage limits of up  to $10 million per risk.


What differentiates E&O insurance from D&O coverage?
Director’s and officers’ (D&O) insurance, also known as management liability insurance, protects members of the executive management team of a public company from monetary losses incurred from lawsuits as result of their management decisions. Errors and omissions insurance, also known as professional liability insurance, protects public firms and institutions from accusations of negligence or failing to deliver services. E&O policies provide cover for any representative or employee of a public company, not just its upper management.


Why do public companies need errors and omissions insurance?
Employees delivering public services, including those working in government agencies and municipalities, face a great deal of legal scrutiny – and lawsuits stemming from claims of wrongful acts could easily cost from hundreds of thousands to millions of dollars, inflicting major monetary losses to a public institution. Carrying E&O insurance helps companies avoid significant financial hit by covering for expenses incurred from the litigation, settlement, and payment of damages because of these lawsuits.


How do you choose the right policy for your public company?
E&O policies vary in coverage, key features, and premiums depending on the industry the public company is serving in. To find the right professional liability policies that suit a business, it is still best to talk to an experienced broker from a reputable insurance provider.


This year in E&O insurance...


2020 has caused many changes in the insurance world. From new risks to mitigate, to understanding how the pandemic would impact clients, brokers had daily challenges to overcome. Here are some of the biggest news stories in errors and omissions insurance this year: 


Hanover study reveals golden opportunity for insurance agents in E&O

A recent survey found that while nearly half of professional service providers face considerable professional liability exposure, a fifth of respondents say that they do not have any professional liability insurance at all.


Professional liability risks pile up during the pandemic

As companies return their employees to work across the US, and then have to bring them home again as reopening plans in certain states shift in the face of the coronavirus, they face a litany of professional liability challenges.


Keep up with the latest news and events

Join our mailing list, it’s free!