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R&R Insurance Blog

The Need for Manufacturers Errors & Omissions Coverage

Posted by Julie Liebelt

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.

Topics: manufacturers errors & omissions, E&O, manufacturers E&O, products recall expense, Business Insurance, manufacturers, products liability