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Errors Omissions Insurance Cost Calculator

E&O insurance protects service providers. This calculator sizes premium.

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$
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Premium estimate

$18,000

Rate on revenue %

0.400%

Claims loading

$0

How the math works

Base = revenue × 0.4%. Experience factor reduces for established firms. Claims load adds 50% of base per prior claim.

E&O premiums are sticky: one claim triples a firm's rate for 3-5 years. Claims prevention training pays for itself — a single prevented claim saves 3-5 years of elevated premium, typically $15-75k depending on firm size.

How to Use

  1. Enter coverage limit.
  2. Enter deductible.
  3. Enter annual fee revenue.
  4. Enter years in business.
  5. Enter prior claims count.
  6. Read premium estimate.

Frequently Asked Questions

Who needs E&O?

Real estate brokers, property managers, appraisers, investment advisors, consultants. Commercial required by licensing boards for brokers (most states). Tenants often require property manager E&O. Buyers sometimes require seller agent E&O.

Coverage areas?

Professional negligence, misrepresentation, documentation errors, cyber events (often separate), discrimination, data breach. Broad scope but exclusions common: intentional acts, criminal activity, fraud.

Premium drivers?

Revenue (fee income). Service type (appraisal riskier than leasing). Claims history (one claim doubles premium). Years in business (new firms higher). Geographic market. Each shifts premium 25-200%.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.

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