Jump ahead to learn:

• Is California Errors and Omissions insurance coverage required?
• How much does Professional Liability insurance in California cost?
• What California Professional Liability insurance covers
• What types of businesses could benefit from E&O coverage in California?
• Are Professional Liability insurance and E&O insurance the same?
• How NEXT helps protect California business owners

Is California Errors and Omissions insurance coverage required?

Professional liability insurance in CA, also called California E&O insurance, may be a necessity for your business for:

• Professional licenses and permits. The city where you work may require professional liability insurance for professional certifications, depending on your industry.
• Getting more work. Some clients, including state and local governments, may require a certificate of insurance (COI) before they’ll work with you, especially on high-cost projects. This proof of insurance may mandate professional liability or E&O.
• Financial protection. California small businesses with an errors and omissions policy could get financial help if they’re accused of professional negligence or if they make a professional mistake that costs a client money.

While professional liability is not required for all businesses, it offers a layer of protection that could be an asset to any business owner.

How much does California Errors and Omissions insurance cost?

The price you’ll pay for California professional liability insurance/E&O insurance varies depending on many factors, including:

The type of work that you do

• Your work experience
• The location(s) where you operate
• How many employees you have
• How high you set your insurance deductibles, policy limits and coverage limits
• Your insurance claims history

NEXT makes it fast and affordable to get CA professional liability insurance or E&O insurance online in about 10 minutes.

Learn more about the cost of professional liability insurance.

What California Professional Liability insurance could cover

CA professional liability insurance could help cover some business costs if: 

• You or one of your employees make a professional mistake that costs a client money.
• Your business faces legal accusations of professional negligence such as wrongdoing or inaction that causes a client financial harm.
• You make a mistake, such as a missed deadline for a client, that results in their financial peril.
• Your business is accused of misrepresentation of services.

Here are some examples of how your insurance company could help with risk management:

• A Los Angeles financial advisor misfiles key documents related to a client’s investment account. The mistake results in a larger tax bill. A professional liability insurance policy could help cover the costs to correct the error and defend against legal claims.**
• After a client’s wildfire-related property claim is denied, they accuse their San Diego-based insurance agent of failing to clarify exclusions in their policy. Errors and omissions insurance could help cover the agent’s legal defense and settlement costs.
• A client sues a San Francisco architect, alleging that poor structural planning led to major delays and increased costs. A professional liability insurance policy covers some legal fees and costs to address the alleged design mistakes.

What types of businesses could benefit from E&O coverage in California?

Many small, medium and large businesses in many industries could benefit from E&O/professional liability insurance coverage.

Liability coverage is usually sought after by:

• Real estate agents
• Insurance agents
• Consultants
• Accountants, tax preparers and financial services
• Engineers
• Architects
• Construction/contractors
• Most professional services

Are Professional Liability insurance and E&O insurance the same?

Professional liability insurance and errors and omissions insurance, or E&O, refer to the same business insurance coverage. The names can be used interchangeably. But depending on your industry, one term may be favored over the other.

E&O is usually used by:

• Insurance professionals
• Real estate agents
• Property managers
• Construction/contractors

Professional liability insurance is usually used by:

• Accountants, tax preparers and financial services
• Architects
• Engineers
• Legal services

How NEXT helps protect California business owners

NEXT makes it fast, easy and affordable to protect your California business — and you can do it all online.

1. We’ll ask a few questions about your business and give you a quote. You select your coverage options and buy your policy in about 10 minutes.
2. Your certificate of insurance (COI) will be available immediately at no extra cost, and you can access your policy 24/7 via web or mobile app.
3. If you have questions, our licensed, U.S.-based insurance professionals are ready to help.

Start a free quote with NEXT.

• California Legislative Codes
• California Department of State
• California Department of Insurance
• California Department of Tax and Fee Administration
• California Small Business Development Center
• California Office of the Small Business Advocate