Costs of error omission rates differ from one profession to another and also depend greatly on the service record of the professional. To get the most reasonable rate, the professional who is planning to be covered by an error and omission insurance must first determine the particular details that he wants insured. He may then find quotes by himself or he can consult an insurance broker who can provide the necessary expertise in getting the best possible rate with the most comprehensive coverage.
Lower rates are usually given to professionals who are in the early stages of their practice. They can also get the error and omission insurance before they commence the practice of their profession so that they start with a clean record. For the insurance company, an unblemished record is less risky since no claims have been held against the professional yet. With lesser risks, the professional can get lower error omission insurance rates.
Professions that tend to draw lawsuits are likely to have higher error omission insurance rates. Claims of negligence are more prevalent against professionals like doctors, lawyers, and architects among others. Thus, these high-risk professions are burdened with high insurance rates.
Several other factors affect error omission insurance rates. Since many variables have to be considered, no standard policy wordings are set for this type of insurance. Therefore, to get the most out from this insurance, policies must be written in carefully detailed claims form. It is also important that within the limit liability, defense expenses are covered as well.