Best Errors and Omissions Insurance Providers for Small Businesses in 2025

A small business is at risk of a claim or financial loss resulting from an accusation by a client that it didn’t do the job professionally. Service providers are at particular risk. To mitigate this risk, an errors and omissions insurance policy, also known as a professional liability policy, is set in place to absorb the risk. 

The Importance of Errors and Omissions Insurance for Small Businesses

An errors and omissions insurance policy provides business owners with the peace of mind that they are not responsible for paying the financial losses associated with professional mistakes and omissions. It protects against legal claims and helps safeguard the company’s reputation when claims arise. It does this by providing a legal defense to help defend the company. All this is to avoid financial losses for the company when claims happen.  

The Best Errors and Omissions Insurance Providers for Small Business Needs

Let’s get into some details about our best picks for errors and omissions insurance. 

Next Insurance: Best Overall

Next Insurance writes professional liability insurance with small businesses in mind. Its focus is on small business owners with up to 50 employees. It has an affinity for general contractors and personal trainers, making it a good option for E&O insurance for these types of service providers. By focusing on small businesses, it is able to price policies in an affordable way to help small business owners meet their budget demands. You can get a quote entirely online and bind it right through the website with payment. This makes it quick and easy to get the coverage you need without a hassle. Next also offers general liability, workers’ compensation, and business owner’s policies so you can get what you need conveniently.

Pros

• Understands the small business mindset
• Makes policies affordable
• Easy-to-use online application

Cons

• Not as big as major carriers
• Phone quotes are not available

Hiscox: Best Micro Business Insurer

You can get a Hiscox insurance policy in a matter of minutes to meet the demands of your small business. Hiscos is known for its competitive pricing for ultra-small businesses, including independent contractors. If you have fewer than five employees, Hiscox is a great option. You have the option of using the online application process or calling the toll-free number to speak with a licensed agent. Hiscox is licensed to do business in all 50 states, and because of its slant in helping micro businesses, it has some of the most competitive pricing around the globe. Get an errors and omission policy through Hiscox and combine it with a business owner’s policy for convenience.  

Pros

• Dedicated to small business owners
• A rating from AM Best
• Competitive pricing for independent contractors

Cons

• You may not be able to purchase all business insurance from Hiscox directly

The Hartford: Best for Mid-to-Large Businesses

The Hartford was founded in 1810 in Hartford, Connecticut, where it still operates its home base. It has more than 18,700 employees to service business owners’ insurance needs. The Hartford is an excellent choice for mid-to-large businesses with more than 10 employees. Its appetite for professional liability is particularly high with accountants, advertising agencies, and consultants. It also likes to underwrite service providers in the home services space for business owner’s policies, workers’ compensation, as well as professional liability. Businesses can rest assured that The Hartford understands their risks and is committed to protecting against them. 

Pros

• A+ AM Best rating
• Centuries of experience in dealing with financial losses 
• Knowledgeable agents who understand industry risks

Cons

• May need to speak with a representative to finalize coverage

Travelers: Best for Construction Industry

Travelers has a wide appetite for those working in the construction industry. This includes general contractors, electricians, plumbers, and carpenters. It was founded in 1864, by a stonecutter, giving it a historical insight into the industries it seeks to underwrite. It was the first company to offer various types of insurance, setting the tone for all insurance companies to bundle and underwrite multiple risks. Today, consumers can get both personal lines and commercial lines of insurance through Travelers. 

Pros

• A++ Am Best rating – the best possible rating
• Wide appetite for service providers
• More than a century of loss experience

Cons

• May need to speak with a representative to get a quote

Admiral Insurance Group: Best for Surplus Lines Coverage

Admiral Insurance Group is a top choice for surplus lines coverage in high-risk industries that have trouble finding coverage elsewhere. While policies may be pricier, this is due to the high-risk nature of the businesses seeking coverage. Admiral Insurance Group has been serving small business owners since 1974, giving it decades of experience in high-level risk. 

Pros

• Handles difficult-to-write industries and businesses
• Understands risk mitigation for high-risk industries
• Knowledgeable staff to help answer questions about policies

Cons

• Does not service all 50 states

Liberty Mutual: Best to Bundle Personal Lines

Liberty Mutual is a national insurance carrier that offers both personal lines of insurance with commercial insurance. You may be eligible for a discount when bundling and can enjoy the convenience of having all policies in one place. Liberty Mutual boasts that it tailors business insurance to meet your needs. Small business owners can expect to get business owner’s policies, workers’ compensation, and professional liability insurance with Liberty Mutual. 

Pros

• Stable A rating from AM Best
• Offers insurance in 29 countries
• Excellent place to get home and auto with business insurance

Cons

• May need to work with an agent to get a quote for business lines

Factors to Consider When Choosing an E&O Insurance Policy

There are some specific factors to consider when choosing an E&O insurance policy, including: 

• Coverage limits: Choose limits that match the risk of your company. A good insurance agent will help you quantify your risks. 
• Industry-specific needs: Work with an insurance agent that understands the risks that are posed to your industry. Each industry has common risks and a good agent will help you mitigate them. 
• Policy exclusions: Know that not every risk is covered by the errors and omissions insurance policy. 
• Claims process: Ask insurance agents what the claims process is like so you can set the foundation of what you will need to do if a claim arises. 
• Cost and premiums: Look for a policy that meets your industry needs but fits into the company’s budget. 

Tips for Selecting the Right Insurance Provider

When buying errors and omissions insurance, consider these tips to get the right provider and policy:

• Assess risk exposure: Work with an agent to get a full picture of what common industry risks are and how to avoid claims. 
• Consult with insurance experts: Insurance agents are there to do more than just sell a policy. They are partners in risk mitigation. They want to help you avoid claims when possible. 
• Read reviews and testimonials: What do other customers have to say about the company? Work with an insurer that has a reputation for standing behind their clients in frustrating situations. 

Compare Policies to Find the Best Errors and Omissions Insurance for Your Business

Getting the best errors and omissions coverage doesn’t have to be difficult. Take the time to shop policies around to see who can offer the coverage you need for the best possible price. Each company has its own appetite guide, so shopping can help you find the insurer who wants to write your business for the most competitive price. Connect with a carrier today to shop for the best insurance.