The average annual cost of E&O insurance for a sole proprietor can range from $500 to $2500 based on figures from 2011, says San Francisco Chronicle. A large consulting company may pay around $14,127 annually as of 2015, says TechInsurance.
Errors and omissions insurance covers a business when a business makes a mistake that financially harms another individual or entity. A number of factors determine the cost of insurance, including the type of business being insured, the location, the annual revenue, the number of professional service providers, and any previous claims. E&O insurance is also referred to as malpractice insurance or professional liability insurance, notes the San Francisco Chronicle.