Errors and Omissions Insurance Dallas, TX

Professional reviewing contract requiring E&O insurance coverage in Dallas

Errors and omissions insurance, also called E&O or professional liability insurance, helps pay legal defense costs and covered settlements when a client says your professional work, advice, or missed deadline cost them money. It's built for businesses that sell expertise instead of products, and it fills the gap that general liability insurance leaves open.

Often the search starts with a client contract that asks for proof of E&O limits before work can begin. Your contract usually sets the minimum, so the policy has to match its wording, not just its price.

Thumann Agency is an independent broker in Dallas, led by Steve Thumann and serving Texas business owners for 30+ years (since 1996). We compare 80+ carriers and read your contract's insurance clause with you before you buy.

  • What it covers: defense costs and covered settlements when a client claims your professional work caused them a financial loss

  • Who needs it: consultants, technology firms, real estate professionals, accountants, architects, engineers, and anyone whose clients pay for expertise

  • What does it cost? Our general starting range is below, and your actual price depends on your profession, revenue, limits, and claims history

Why Dallas Businesses Choose Thumann Agency

When a client asks for proof of coverage before you can start a job, you need an answer fast. Here's what you get with us:

  • Independent broker: we compare 80+ carriers instead of handing you one company's policy

  • A dedicated advisor: one person who knows your account, not a call center

  • 30+ years in Dallas: Thumann Agency has placed Texas business coverage since 1996

  • Contract-first placement: we read your client's insurance clause and match limits, dates, and wording before you sign

  • Same-day certificates of insurance for existing clients: proof of coverage when a contract needs it

  • Annual renewal reviews: so your limits and retroactive date keep pace as your services and contracts change

  • Servicio en español: Spanish-language support is available (see our seguros de negocio page)

What Our Clients Say

Thumann Agency holds a 4.6-star rating from 140+ Google reviews. Here's what some of our business clients say about working with us.

Nida did an outstanding job finding an underwriter to insure my small LLC consulting business. Quick, thorough and professional. Highly recommended

John Childs | Google | ★★★★★

Thank you Nida and Thumann agents for always making sure I got what I need for my projects! I've been with this agency for 4 years and I couldn't recommend them more! We recently needed additional coverage for a new contract and Nida went above and beyond to get us what we were needing. Thank you!!!

Jose Medina | Google | ★★★★★

Haley was a pleasure to work with in getting our commercial insurance set up for our company. She was very prompt and professional. Super helpful and willing to answer any questions. Very pleased with our experience with Thurmann Agency!

Grace Anne Bills | Google | ★★★★★

Google reviews | 4.6 stars, 140+ reviews | BBB A+ rating | Trusted Choice pledge

Need proof of coverage for a new contract? Get a Quote or Call Us.

What Is Errors and Omissions Insurance?

Errors and omissions insurance covers financial harm that a client says came from your professional work, not physical harm to a person or property. E&O and professional liability describe the same core coverage. Different industries just use different labels.

Here's the difference in practice. Say a client sues because a software rollout missed its launch date and cost them sales. General liability is meant for injuries and property damage, so it won't respond to that claim. E&O is the policy designed for it.

Which Dallas Businesses Need Errors and Omissions Insurance?

If clients pay you for advice, design, software, or a finished deliverable, you likely carry E&O exposure. That describes a large part of the local economy. Professional and business services employed about 810,200 people in the Dallas-Fort Worth-Arlington area in September 2026, about 18.6 percent of all nonfarm jobs by our calculation from preliminary Bureau of Labor Statistics employment data.

  • Consultants and marketing agencies: clients may claim that a strategy, campaign, or report fell short of what you promised in writing

  • IT consultants and software companies: claims often start with a missed go-live date, a failed integration, or data lost during a migration

  • Real estate agents and brokers: disclosure disputes, missed contract deadlines, and misrepresentation claims can all lead to a claim against you

  • Accountants, bookkeepers, and financial professionals: a filing error or a disputed recommendation can lead to a negligence claim (securities-related claims may be excluded, so ask us to check the wording)

  • Architects and engineers: a design error or missed specification may surface years after the project is finished

  • Staffing agencies, property managers, and project managers: these roles involve decisions made on someone else's behalf, so clients and owners sometimes ask for proof of E&O

Not sure whether you fit? Call us and we'll tell you.

Does Texas Require Errors and Omissions Insurance?

Not across the board. Requirements come from specific licensing rules, lenders, and client contracts, so the answer depends on your profession.

  • Real estate brokerage entities: under Texas Occupations Code Section 1101.355, a business entity must prove it carries E&O insurance with a minimum annual limit of $1 million per occurrence when its designated broker owns less than 10 percent of the entity

  • Client contracts: this is often where a Dallas professional first meets a requirement, usually as a minimum limit and proof of coverage before work starts

  • Licensing boards: rules differ by profession and change over time, so check yours or ask an attorney

You can read the statute on the Texas Occupations Code page. Laws change, so confirm the current text before relying on it.

What Does Errors and Omissions Insurance Cover?

Coverage depends on the policy form, so ask to see the actual wording. In general, E&O responds to claims that your professional service was done wrong, done late, or not done at all.

  • Negligence and mistakes: errors in your work, advice, or calculations

  • Missed deadlines: late deliverables a client says cost them money

  • Failure to deliver: services a client says were incomplete or fell short of what was promised

  • Misrepresentation: advice or information a client says was inaccurate or left out something important

When a covered claim is made, the policy can help pay your attorney fees, court costs, and expert witnesses, and any settlement or judgment the policy covers, up to your limits and after your deductible. Many policies defend a claim whether or not it turns out to be true. Some count defense costs inside your limit, which means legal fees can shrink the money left for a settlement, and some carriers offer defense outside the limit. Ask which one you're buying.

Hypothetical example: A Dallas marketing consultant delivers a campaign after the launch date in the contract. The client says it lost sales and files a negligence claim. If the claim falls within the policy, E&O can help pay the legal defense and any covered settlement.

What Errors and Omissions Insurance Doesn't Cover

E&O is for professional mistakes. It doesn't replace the other policies a Dallas business needs.

A business owner's policy bundles general liability and commercial property. E&O is usually written separately, though some carriers offer it alongside for certain professions. Ask us how a carrier handles yours.

Claims-Made Coverage, Retroactive Dates, and Tail Coverage

E&O is usually written on a claims-made basis, which works differently from general liability, and this is the part buyers often miss.

  • Claims-made: the policy in force when the claim is made is the one that responds, no matter when you did the work

  • Retroactive date: the cutoff before which work isn't covered, so you want it as far back as possible and kept from resetting when you switch carriers

  • Tail coverage: also called an extended reporting period, it lets you report claims after a policy ends for work done while it was active

Hypothetical example: A Dallas consultant closes her firm in December and cancels her policy in January. In March, a former client files a claim over a project from two years earlier. Without tail coverage, no policy may be in place to respond.

Time matters most for design professionals. Texas generally allows a private party to sue a licensed architect or engineer up to 10 years after a project's substantial completion, under Texas Civil Practice and Remedies Code Section 16.008. A policy that ended years earlier can leave that window uncovered. Time limits differ by type of claim, so ask an attorney how long clients have to sue in your situation.

What to Look for in a Dallas Client Contract

Your client's insurance clause often decides what you buy. Check it for these points before you sign.

  • Minimum limits: the amount per claim and the total for the policy year

  • Retroactive date and continuous coverage: some contracts require you to keep coverage for a set number of years after the project ends

  • Certificate wording: exact language the client wants on your proof of insurance

  • Additional insured or special terms: E&O forms don't always allow these, so ask before you agree to them

  • Deductible: who pays it, and what you can afford

Send us the clause and we'll compare it to your quotes before you sign.

How Much Does Errors and Omissions Insurance Cost in Dallas?

E&O for Dallas small businesses often runs about $500 to $3,000 per year, depending on your profession, revenue, limits, and claims history. Our general starting range for professional liability is $55 to $110 per month for many smaller, lower-risk firms. Architects, engineers, and some financial professionals can pay more.

General examples by annual revenue:

  • About $100K: roughly $500 to $800 per year

  • About $500K: roughly $1,200 to $1,800 per year

  • $1M or more: roughly $2,000 to $3,000 per year

What Affects Your Premium

  • Profession and services: carriers price risk by how often a field gets sued and how large claims run

  • Revenue and client size: more work and bigger clients mean more exposure

  • Limits and deductible: higher limits cost more, and a higher deductible can lower the premium

  • Claims history and years in business: a clean record and an established business help

  • Contract terms: retroactive dates and extended reporting periods can change the price

How to Lower Your Cost

  • Use written scopes of work and contracts, so carriers see clear boundaries

  • Put scope changes in writing so expectations stay clear

  • Choose limits that match your contract instead of guessing high

  • Raise your deductible only to a level you can pay comfortably

  • Keep your retroactive date from resetting when you renew

  • Let us compare carriers each year

Prices shown are general starting ranges for common Texas business policies. Your actual cost is set during the quote process and depends on your specific business. We don't guarantee pricing or savings.

How to Get Errors and Omissions Insurance in Dallas

  1. Tell us what you do: your services, revenue, and the clients you work for.

  2. Send your contract's insurance clause: if a client asked for proof of coverage, we'll read it with you.

  3. Compare options: we show carrier quotes side by side and explain limits, retroactive date, deductible, and exclusions in plain English.

  4. Choose and get proof: you pick the policy, and existing clients get same-day certificates of insurance.

Errors and Omissions Insurance Across Texas

Our office is at 12770 Coit Road, Suite 110, in Dallas, and we serve Texas professionals from there, including clients in Houston, Austin, Corpus Christi, Galveston, and San Antonio. Texas business owners outside Dallas can start with our Texas business insurance page. We're licensed in Texas, and coverage terms vary by carrier.

Frequently Asked Questions

Can I get E&O insurance if I've had a claim or a client is already unhappy?

Possibly, but it depends on the carrier and the facts. Applications ask about past claims and known problems, and policies generally don't cover a claim you knew about before the policy started. A past claim can raise the price or limit your options. Tell us the full story up front, and we'll compare carriers that review your history.

Do I need E&O insurance if I'm a sole proprietor or an LLC?

Often, yes. An LLC can limit some personal liability, but it generally doesn't remove responsibility for your own professional mistakes, and a client can still sue your business. An attorney can explain how that applies to your structure. E&O helps pay defense costs and covered settlements, so they don't come straight from your business or personal assets.

How much E&O coverage should I carry?

Start with your contract, which often names a minimum per claim and a total for the policy year. Then think about how large a client's loss could be if your work failed, not just what you bill. Higher limits cost more, so compare options side by side. We'll read the clause with you and show what each limit adds.

Does E&O cover my employees and subcontractors?

Employees are typically covered as insureds under your business policy, but subcontractors often aren't. If you hire outside consultants or freelancers, ask whether their work falls under your policy or whether your contract requires them to carry their own. Policies differ, so check the wording before you rely on it.

Should I buy E&O online or through a broker?

Online quotes can work when your profession is simple and your contract asks for nothing unusual. A broker helps when a contract has specific wording, when you've had claims, or when you want carriers compared side by side. As an independent broker, we compare carriers side by side and explain the policy before you sign. Either way, read the exclusions.

Ready to Match Your Errors and Omissions Coverage to Your Contract?

Send us the insurance clause or tell us what you do, and we'll walk through your options in plain language. Get a Quote, Call (972) 991-9100, or Talk to Us and we'll take it from there.

Last Reviewed: October 2026

Author: Steve Thumann, Licensed Texas Insurance Broker

Sources: Bureau of Labor Statistics, Texas Occupations Code, Civil Practice and Remedies Code

Disclaimer: This information is for general educational purposes only and is not legal, tax, or insurance advice or a full description of any policy. Coverage terms, limits, and exclusions vary by carrier and by state, including Texas. Prices shown are general starting ranges, not a guaranteed quote. Errors and omissions policies are usually written on a claims-made basis, and claims-made and occurrence forms respond differently, so coverage always depends on the policy in effect. The examples are hypothetical. Reviews reflect customers' own experiences. Contact Thumann Agency for details about your needs. Thumann Agency is licensed under Texas Department of Insurance regulations.