Manufacturers Errors and Omissions

You’re proud of your work and you’re careful to manufacture products that meet the needs of your customers. But errors can happen, and you could make a product that doesn’t meet your client’s standards.

Manufacturers E&O coverage applies when there is an error, omission, or negligent act that leads to financial loss to a third party without bodily injury or property damage. Manufacturers Errors & Omissions is a claims-made coverage.

An example of Manufacturers E&O in action…

A manufacturer is contracted to manufacture a specific part for a customer who assembles washing machines. The manufacturer creates the part and sends it on to their customer, who then realizes the part is not usable as it is defective. The customer will need to have the part remade. This causes a delay in assembling the washing machines; therefore, the customer is unable to ship them out on time. The customer files a suit against the manufacturer for their financial loss.

This claim example is provided for illustrative purposes only. Any actual claim that is presented will be investigated and coverage will be determined based on the specific facts of the claim and application of the language of the policy form. We recommend that our insureds read and review the coverage form and present any questions to their agent or seek the advice of counsel.