RFP Template Items to Include When Seeking Professional Liability Insurance (Errors & Omissions) Quotes

Professional Liability Insurance (Errors & Omissions — E&O) protects firms from claims of negligence, missed deliverables, or inadequate professional advice. When buying E&O in the USA — especially in high-exposure markets like New York City, San Francisco, Chicago, and Miami — a structured Request for Proposal (RFP) speeds competition, ensures apples-to-apples comparisons, and reduces surprises at binding. Use the checklist and templates below to get accurate, comparable quotes from carriers and brokers.

Why a detailed RFP matters

• Improves quote accuracy — Underwriters can price risk only when they receive complete data.
• Enables apples-to-apples comparison — Standardized responses let you evaluate limits, retentions, and contract language.
• Accelerates placement — Fewer follow-ups reduce time-to-bind.

Required RFP Sections & Specific Items to Request

1) Firm summary (baseline info)

• Legal business name, DBA, FEIN
• Primary office address(es) and percentage of revenue by location (e.g., NYC 60%, SF 20%)
• State(s) of operation and licensing
• NAICS / SIC codes and primary service descriptions

2) Financials & revenue breakdown

• Last 3 years revenue (gross receipts) with current year-to-date
• Revenue by service line and by geographic market
• Projected revenue for next 12 months

3) Operations & personnel

• Number of partners, principals, licensed professionals, and employees (FT/PT/contractors)
• Key staff bios for professionals delivering client work
• Subcontractor usage and agreements

4) Client & contract profile

• Typical client types (enterprise, SMB, public sector) and largest contract size
• Sample client contract(s) that include hold-harmless, indemnity, limitation of liability, or warranty clauses
• Percentage of work performed under written contract vs. verbal agreement

5) Risk exposures & services provided

• Detailed list of services, software/tools used, and any design/engineering/programming activities
• Project/engagement lifecycle and change-control processes
• Use of client data, PHI, or PCI exposure

6) Claims & losses

• Prior 10 years claims history (open, closed, amounts paid, reserves) including dates, descriptions, and outcomes
• Pending regulatory or disciplinary actions

7) Current & prior insurance details

• Current E&O carrier, policy period, limits, retentions/deductibles, premiums, and retroactive date
• Prior E&O carrier history (last 5 years)
• Prior coverage forms and endorsements (attach sample policy declarations and forms)

8) Coverage needs & limits

• Desired limits (e.g., $1M/$2M, $2M/$4M, $5M aggregate)
• Preferred deductible/retention levels
• Required retroactive date and third-party vendor coverage needs
• Specific endorsements required (e.g., breach of contract, IP infringement, cyber-liability integration)

9) Underwriting attachments

• Standard engagement letter and sample deliverables
• Internal risk management policies (QA, incident response, change logs)
• Organizational chart and org-level insurance certificates for key vendors

10) Response format & mandatory deliverables

Ask brokers/carriers to return the following as separate attachments:

• Summarized proposal with premium, fees, and commission shown separately
• Quoted policy forms and all endorsements (redline if different from standard forms)
• Underwriting assumptions and exclusions
• Claims handling & panel counsel description
• Binding conditions and audit clauses
• Estimated timeline from binder to policy issuance

RFP Evaluation Criteria (scoring matrix)

Use a weighted scoring matrix to compare proposals:

Refer to carrier reputation and claims service when scoring: see guidance on How to Evaluate Claims Service and Reputation for Professional Liability Insurance (Errors & Omissions) Providers.

Required Broker Deliverables & Negotiation asks

Ask brokers explicitly to include:

• Full premium breakdown by insured entity and location
• Alternative pricing (higher limits / lower retention) and layered program options
• Loss-sensitive/retrospective premium options if available
• Commission & fee disclosures
• Negotiation strategy including targeted endorsements and exclusions to remove or soften

If you plan to negotiate, see recommended tactics: Negotiation Tactics to Secure Better Terms on Professional Liability Insurance (Errors & Omissions).

Sample pricing expectations (USA market examples)

E&O premiums vary significantly by profession, revenue, state, and claims history. Typical ranges for small-to-medium professional firms:

• Small consultants or independent professionals (U.S., $250K–$1M revenue): $400–$1,200/year for $1M/$2M limits (Hiscox quotes start around this level for qualifying small firms) (source: Hiscox).
• Mid-size firms (U.S., $1M–$10M revenue): $1,500–$10,000/year for $1M–$2M limits depending on exposures and location.
• Technology, architects, and engineering firms often pay more: $5,000–$50,000+/year at higher limits or with heavy PI exposure.

Examples by carrier and reference:

• Hiscox: small-business E&O policies often advertised starting in the $350–$600/year range for qualifying consultants (source: Hiscox E&O page).
• Market aggregators (Insureon) report median small business E&O premiums in the same ballpark but spike by industry and state (source: Insureon).
  Sources:
• Hiscox Errors & Omissions Insurance: https://www.hiscox.com/small-business-insurance/errors-and-omissions-insurance
• Insureon Errors & Omissions Insurance overview and cost guidance: https://www.insureon.com/insurance/errors-and-omissions

Note: In New York City and California (San Francisco), carriers often apply higher rates and tighter underwriting due to larger claim sizes and court environments.

Comparison table template (use this in your RFP responses)

RFP timeline & next steps (recommended)

• Issue RFP: Week 0
• Q&A window (broker questions): Week 1
• Proposals due: Week 3
• Shortlist & interviews with brokers/carriers: Week 4
• Final negotiation & selection: Week 5–6
• Bind & issue policy: Week 7–8

When choosing a broker, prioritize those who demonstrate market access and a documented placement strategy. For guidance on selecting the right broker, see How to Choose a Broker for Professional Liability Insurance (Errors & Omissions): Questions to Ask.

For comparing returned proposals in spreadsheet form, use this guide: How to Compare Professional Liability Insurance (Errors & Omissions) Proposals: A Practical Spreadsheet Guide.

Prepared RFP packages produce better quotes, faster placement, and stronger coverage outcomes. Use the checklist and templates above to get actionable, comparable E&O proposals tailored to your firm and your U.S. locations.