Errors and omissions insurance, otherwise known as  E & O insurance or professional liability insurance, is a type of coverage that protects business owners in the case that a client or patron claims negligence or loss due to an error or omission on the part of the policyholder. This usually is measured as a financial loss in the form of lost revenue, lost investment, or lost money paid for a product.

While other types of liability insurance a business may carry generally cover physical issues like injury and property damage, this kind of insurance deals with claims of negligent practices, inadequate results/products, inaccurate professional advice, misrepresentation, unfair business deals, and other somewhat less tangible issues.

What Kinds of Claims Does Errors and Omissions Insurance Cover?

The following are just a few examples of general business situations that may be covered by errors and omissions insurance (depending upon the policy):

  • An IT company suffers a data breach and fails to protect client information.
  • An investor takes advice from a stockbroker that goes poorly and is said to have been inaccurate.
  • A custom product fails to work as promised and results in financial losses for the client.
  • A software package fails to run or lacks promised capabilities, despite representation by the developer/salesperson as being powerful and bug-free.

As the owner of a restaurant, bar, nightclub, or another establishment that sells alcohol, you may face very particular situations:

  • A fight breaks out in your bar, but assault and battery are excluded from your general liability policy.
  • Your company caters a wedding reception and is supposed to deliver hot food to be served at 5:00 p.m., but the food arrives unheated at 5:00 and takes another hour for catering staff to heat through and prepare.
  • A company rents out your nightclub for a networking event and finds that there is not enough seating space as represented to them by a nightclub employee.

Protect Your Business with E&O Insurance from Tabak Insurance Agency

At Tabak Insurance Agency, we’ve been helping business owners in the bar and restaurant industry with their professional insurance needs for more than 25 years. We have a deep understanding of the unique issues relevant to food and alcohol service, and we have provided companies with the commercial property, liquor liability, and general commercial liability insurance they need to keep their businesses protected.

Our company serves businesses of all sizes, no matter how many locations they have or what kind of clientele they serve. If you have a bar, restaurant, or another establishment that serves food or alcohol, Tabak Insurance Agency has the niche industry knowledge and experience you need to safeguard your business.

To learn more about our commercial insurance coverage options or ask any questions you may have about errors and omissions requirements, call us today at (281) 769-5274.

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