Manufacturers E&O

Did you know that your General Liability policy does not cover you for damage arising out of manufactured products if it does not cause bodily injury and or property damage? Most GL policies using the standard ISO form agree to pay sums where an insured becomes “legally obligated to pay as damages because of bodily injury or property damage”. Additionally, “damage to impaired property exclusion” which is found in most GL coverage forms can potentially create a significant impact on a manufacturer’s overall risk of exposure. This can leave a manufacturer with large financial losses.

The “Damage to Impaired Property” or “Property Not Physically Injured” exclusion removes coverage from your product or work that fails to perform to its warranted potential but does not cause bodily injury or property damage. If there should be a sudden or accidental physical injury, this would not apply. Basically if your product is faulty and the end product cannot function due to your product, there is no coverage for any loss to the third party.

Manufacturers Errors and Omissions Insurance is designed to cover gaps in your GL policy. Errors and Omissions will cover an insured for legal obligations arising from damages for non covered products and/or services. It is also important in the production of products that could cause a customer financial loss. Without E&O coverage, the insured could be responsible for paying these losses out of pocket leaving the insured with a large financial burden.

Greg Mattingly has been great to deal with. We recently purchased an agency and he was extremely helpful in getting us through our first renewal and found us a policy with lower premium than the prior owners had. The whole process was smooth and relatively pain free!"

Marty J. Trierweiler | Alexandria, MN