
Errors and omissions insurance in Michigan is designed to protect professionals from financial losses due to claims of negligence or errors. This type of insurance is a must-have for businesses that provide professional services.
In Michigan, errors and omissions insurance is typically required for professionals such as architects, engineers, and lawyers. These professionals often have a high level of expertise, but even they can make mistakes that result in financial losses for their clients.
The cost of errors and omissions insurance in Michigan varies depending on the type of business and the level of coverage needed. On average, a small business in Michigan can expect to pay around $500 to $2,000 per year for this type of insurance.
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What Is Errors and Omissions Insurance?
Errors and Omissions insurance helps shield small businesses against professional wrongdoing, such as mistakes, errors, and omissions in your work.
This type of insurance covers the costs of defending your business in court, including legal defense fees, court costs, and other administrative fees.
It may also cover settlements or judgments that result from legal action, which can help prevent financial ruin in the face of a costly lawsuit.
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What Is Covered

Errors and Omissions (E&O) insurance covers a range of professional wrongdoing, including mistakes, errors, and omissions in your work. This can be a costly mistake, especially if you're sued over a mistake in your professional work.
E&O insurance helps shield small businesses against allegations of professional negligence, breaches of contract, and undelivered services. These can be serious issues, and the costs can add up quickly.
Here are some specific types of claims that E&O insurance can help cover:
- Mistakes, errors, and omissions in your work
- Undelivered services
- Missed deadlines
- Allegations of professional negligence
- Breaches of contract
In Michigan, E&O insurance policies typically cover the costs of defending your business in court, including legal defense fees, court costs, and other administrative fees. This can give you peace of mind, knowing that you'll be covered even if you've done nothing wrong.
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Description
Michigan Notary Errors and Omissions Insurance policies range from $10,000 to $100,000 and can be purchased for 1-6 year term limits.
Notarize more and worry less, knowing your notary E&O policy will kick in to cover your legal fees and potential claims up to the policy limit.
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A notary bond protects the public from financial harm caused by a notary.
One lawsuit can damage you and your family financially for many years.
E&O insurance has a no deductible.
Without E&O insurance, the notary public remains personally liable to the full extent of any damages sustained by the client.
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Who Should Carry Errors and Omissions Insurance?
You should carry Errors and Omissions insurance if you provide professional services or expert advice, as a client could sue if your service or advice causes accidental harm.
Any business that provides a professional service or expert advice should carry professional liability coverage, as a client could sue if your service or advice causes accidental harm. Even an unwarranted lawsuit can be expensive between attorney's fees, court costs, or a settlement.
Industries at risk for professional liability claims include a diverse list of occupations, such as accountants, engineers, real estate agents, and consultants.
You might want to consider E&O insurance if you are regularly providing clients with advice or recommendations based on your professional knowledge, designing custom solutions, representing your clients' interests on their behalf, or have employees who do any of the above.
Here are some examples of professions that may benefit from Errors and Omissions insurance:
- Accountants
- Engineers
- Real estate agents
- Consultants
Cost and Exclusions

The cost of errors and omissions insurance in Michigan can vary depending on several factors, including your occupation, industry, business size, and location.
The average cost of professional liability insurance nationwide is $66 per month, but in Michigan, it's around $59 per month. This is relatively affordable, especially considering the protection it provides against costly lawsuits.
To give you a better idea of what to expect, here are some factors that can affect the cost of your E&O insurance:
- Your occupation and/or the industry you work in
- Your business’ annual revenue
- How many employees will be covered by the policy
- Your employees’ licensing and experience
- The amount of coverage you choose
- Your history of claims
It's also essential to understand the common exclusions in an E&O insurance policy. Some of the most common exclusions include bodily injury and property damage, which are instead covered under general liability policies, and dishonest or malicious acts.
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Cost
The cost of professional liability insurance and Errors and Omissions (E&O) insurance can vary significantly, depending on several factors.
The average cost of professional liability insurance nationwide is $66 per month, while in Michigan, it's around $59 per month. That's just $60 per month in Michigan to protect yourself from costly lawsuits.
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Your business's type, industry, and location can all impact the cost of professional liability insurance. For example, professionals in Detroit, Lansing, and Grand Rapids may have different rates.
Coverage limits and deductible also play a role in determining the cost of professional liability insurance. The higher the coverage limits and the lower the deductible, the more expensive the policy will be.
Some clients require professionals to have professional liability insurance, which can provide peace of mind and financial protection.
Here are some factors that can affect the cost of E&O insurance:
- Your occupation and/or industry
- Your business's annual revenue
- The number of employees covered by the policy
- Your employees' licensing and experience
- The amount of coverage you choose
- Your history of claims
One way to get an idea of the cost of E&O insurance is to compare multiple quotes online. This can help you find the best coverage for your small business needs.
Common Exclusions
Professional liability insurance policies often have exclusions that can catch professionals off guard. Most insurance companies exclude intentional harm caused to others.
Some common exclusions in professional liability insurance include:
- The illegal violation of any law, regulation, or statute
- Any services you provide under the name of another entity, such as a subsidiary business or organization not listed on your policy
- Defamation, such as libel and slander
- Discrimination
Michigan E&O insurance policies, on the other hand, have their own set of exclusions. Bodily injury and property damage are typically not covered under E&O insurance policies, as these coverages are usually provided under general liability policies.
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E&O insurance policies in Michigan often exclude claims between two parties who are insured under the same policy, known as "insured vs. insured" exclusions. Dishonest, criminal, fraudulent, or malicious acts are also not covered.
Some other common exclusions in Michigan E&O insurance policies include bankruptcy or insolvency of any party, liability of others assumed under contract, warranties, guarantees, cost estimates, or breach of contract, and infringement of copyright, trademark, patent, or trade secret.
Policy Types and Requirements
In Michigan, errors and omissions insurance policies are typically categorized into two main types: professional liability and general liability.
Professional liability insurance covers professionals such as architects, engineers, and contractors against claims of negligence or errors in their work.
General liability insurance, on the other hand, covers businesses against claims of bodily injury or property damage.
Michigan law requires that all architects and engineers have professional liability insurance to protect against claims of negligence or errors in their work.
Insurance requirements for contractors in Michigan vary depending on the type of project and the contractor's experience and qualifications.
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Occurrence vs Claims Made Policy Form

A claims made policy covers claims reported during the policy period, as long as the act, error, or omission that gave rise to the claim was incurred after the retroactive date.
The retroactive date is usually set as the first day of coverage of the first claims made policy ever purchased and should not be changed at policy renewal.
If you don't renew a claims made policy and a claim is subsequently reported, no coverage will be available even if the claim was incurred while a policy was in effect.
In contrast, an occurrence policy is simpler and covers claims incurred during the policy period, even if the claim is reported after the policy expires.
Occurrence policies are widely used in other lines such as automobile and homeowners insurance.
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Is Required
In Michigan, Errors and Omissions Insurance is not required by law for businesses.
However, a policy may be necessary to receive certain professional licenses and to join some industry associations.
This means you'll need to check with the State of Michigan or your association's website for specific requirements.
Some clients may also include minimum coverage requirements in their business contracts that you're obligated to meet.
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Michigan Specific Information

Michigan has a unique set of laws and regulations that affect errors and omissions insurance.
In Michigan, professionals are required to have E&O insurance to protect against claims of negligence or errors in their work.
The Michigan Insurance Code requires insurance companies to offer E&O coverage to professionals in certain industries, including healthcare and finance.
Michigan's no-fault insurance law also applies to E&O insurance, meaning that policyholders can file claims without proving fault.
A typical E&O insurance policy in Michigan includes coverage for defense costs, settlements, and judgments.
The average cost of E&O insurance in Michigan is around $500 to $1,000 per year, depending on the profession and level of coverage.
Frequently Asked Questions
What is covered under errors and omissions insurance?
Errors and omissions insurance covers damages, court costs, and expenses related to lawsuits, judgments, settlements, and regulatory proceedings
How much should E&O insurance cost?
Errors and omissions insurance typically costs between $50-$100 per month, or around $735 annually, on average. If you're considering purchasing E&O insurance, your costs may vary depending on your specific needs and circumstances.
Is errors and omissions insurance worth it?
Errors and omissions insurance can help protect your business from costly mistakes and reputational damage, making it a wise investment for professionals who want to safeguard their clients and reputation
What is excluded under errors and omissions insurance?
Under errors and omissions insurance, exclusions typically include claims related to hostile workplace or sexual harassment, as well as intentional harm, property damage, or theft by your business or its associates
Sources
- https://www.insureon.com/small-business-insurance/professional-liability/michigan
- https://notary.net/product/michigan-notary-eo-insurance/
- https://www.bizinsure.com/errors-and-omissions-insurance-michigan/
- https://www.cbspecialty.com/errors-omissions-insurance-michigan.htm
- https://www.kaufmanlaw.com/Insurance-Law/E-O-Insurance-Law.html
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