Welcome back to this month’s blog post with yours truly Justin Madar!
This month’s topic in my opinion is one of the most missed coverage that we see when reviewing prospects polices. What is the topic you ask? Well Errors and Omissions (E&O) coverage of course! Now I know most of you are wondering, what is Errors and Omission coverage? I thought the same thing when I started almost five years ago, and lucky for you we are going to dive into it today.
Errors and Omissions coverage can be added to multiple different types of business. The most common business to have them in my opinion would be your garage/body shops or contractors/manufacturers. Obviously, we want to make sure it is on everyone’s commercial policies because you just never know what could happen. This coverage is added to protect you, your employees, or even the actual product you are installing itself. Whether its faulty workmanship, a mistake made in the design of the work or just defective materials that was used, errors and omissions will kick in to protect you and your business reputation. The last thing any business owner wants, is to ruin the name they have spent their entire life trying to build get torn down in flame because they were not aware of this endorsement being available to them.
I know the suspense is killing everyone and you want an example of when this coverage might come into play. I have had the opportunity to talk with a lot of our companies about these types of claims, just so I can bring up examples in meetings of why its so important to have. One that comes to mind was a bottling service, this bottling company was hired to seal, label and distribute pop out to venders. During the process, the sealing machine had a malfunction causing all the pop to lose its carbonation. Due to the malfunction this business was going to have to pay out to replace the product. It was a good thing they had the Errors and Omissions coverage on the policy because if not, they would have had to pay out over $50,000 and probably lose the business they had with this company. Errors and Omission saved not only the product, but the reputation of the business as well.
Since starting at MLL in 2017, my overall goal has been to help better protect individuals and be their advocate and counselor when an insurance problem or question arises. I have spent the last four years attending trainings and classes over different commercial risks and various coverages for personal and commercial insurance all to help me assist you with the highest level of confidence and quality.