Errors and Omissions Insurance in Illinois

What is Errors & Omissions insurance?

Errors and Omissions (E&O) insurance can protect professional service providers from potentially devastating financial damages resulting from alleged negligence or error in the delivery of your services. E&O insurance may also be found under the name Professional Liability.

According to the U.S. Small Business Administration (SBA) Office of Advocacy in 2022, there were 1.2 million small businesses in Illinois. While they accounted for 99.6 percent of the state’s businesses, these figures are increasing steadily.

No matter which field you’re in, the nature of the products you offer, or the nature of the services you provide, mistakes can happen. Even if you have an excellent track record, one mistake can result in a lawsuit against your company.

Errors & Omissions insurance is crucial for small-scale business owners to safeguard their future financial security in a competitive market. Your company is secure against claims resulting from your inattention (errors) and inadequate services (omissions).

Who needs Errors and Omissions insurance?

Professionals and firms whose work involves providing clients with guidance, education and designing solutions, as well as those who represent the needs of others are required to purchase Errors and Omissions insurance.

Whether the claim is true or not, Errors & Omissions insurance will safeguard you, your business, and even your reputation from costly consequences.

Professions that generally require Error and Omissions insurance include, but aren’t restricted to:

How much does Errors & Omissions insurance cost in Illinois?

In Illinois, the average cost of E&O insurance is $644 per year. However, it depends on your particular business. Similar to other policies, the greater the part of risk, the greater the amount of premium you’ll need to pay to cover that risk.

These are some of the elements which affect the price of your Errors and Omissions coverage:

• The priorities of your business, its location and risk tolerance
• The amount of turnover and the size of your company
• How much coverage do you need?
• Your previous claims history If you have any
• The individuals being covered – their qualifications, suitability for the position, as well as any claims they have made in the past

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