Manufacturers Errors & Omissions Insurance
A manufacturer can create a major loss for a customer without causing bodily injury or physical damage. Manufacturers E&O is designed to address certain covered financial-loss allegations arising from errors, omissions or failures in a manufactured product or related service, depending on the form.
Build the program around how the operation actually works.
Manufacturing insurance is not one policy. The right structure depends on the product, process, property, people, contracts and potential severity of a loss.
Important distinctions before renewal.
How is manufacturers E&O different from general liability?
General liability is principally built around covered bodily injury and property damage. Manufacturers E&O can be relevant when the allegation is economic loss caused by an error, omission or failure to perform, depending on the policy form.
Does every manufacturer need E&O?
Not necessarily. It becomes more important when a manufacturer works to specifications, designs or engineers products, makes performance representations, or could cause meaningful downstream financial loss without bodily injury or property damage.
What should be reviewed in customer contracts?
Insurance requirements, indemnification, warranties, performance standards, consequential-damage provisions and limitation-of-liability language are all worth understanding alongside the insurance program.
Coverage descriptions are general. Actual coverage depends on the specific policy forms, endorsements, limits, exclusions and facts of a claim.
Keep digging into the exposures that matter.
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