The Need for Manufacturers Errors & Omissions Coverage

Written by
March 23rd, 2011

The standard commercial general liability policy is intended to cover bodily injury or property damage that a product may cause.  However, sometimes a product does not cause injury or damage, it merely falls short in performance and causes a financial loss to a customer, leaving the manufacturer contractually obligated to compensate its customer for damages.  Manufacturers E&O coverage can fill this gap in products liability.   There are several insurance carriers offering this type of coverage, some with the option to add coverage for the cost to recall a product.  Please call your agent to inquire about the availability and cost of this coverage enhancement.


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