What is errors and omissions (E&O)?

Errors and Omissions (E&O) is professional liability insurance that protects businesses from claims of negligence, mistakes, or failure to perform professional services as promised.

What you need to know

Also called professional liability, E&O covers claims that your professional services caused financial harm to a client. For restaurants, this most commonly applies to catering operations where you failed to deliver as promised.

Why it matters for restaurant owners

Standard restaurants rarely need E&O insurance, but catering operations do. If you contract to cater a wedding for 200 people and show up with food for 150, the client can sue for damages when they had to order emergency pizza. E&O covers these failures to perform as contracted.

If catering represents significant revenue, add this coverage to protect against operational mistakes that cause client financial losses.