The cost of Errors and Omissions Insurance can vary quite a bit. When determining the dollar amount of coverage, the occupation of the insured, the annual revenue of the business, the loss history, and the number of employees will be taken into account when the insurance company determines the amount of premium to charge. How much insurance the business or professional wants to purchase also affects premiums, as does the location of the business itself. Perhaps surprisingly, certain areas of the country are far more prone to lawsuits than others, and some municipalities are known for large jury awards which can affect the total costs of claims and, ultimately, the cost of insurance.
According to a study by the United States General Accounting office, a survey of Medical Malpractice Insurance premiums showed a range from $17,000 a year in Minnesota to $201,000 a year in Dade County, Florida. Meanwhile, non-medical professions can obtain $1 million in coverage for less than $150 a month through specialized insurers that focus on insuring a variety of types of businesses.
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