Errors and Omissions

E&O for manufacturers is a subset of professional liability insurance that protects companies, their workers, and other involved professionals against cases of negligence or material defects, and any associated damages and financial losses. You may assume that a commercial general liability policy would cover instances of delays in production or significant financial loss caused by missed deadlines or a product recall. However, many cases aren’t fully protected with just a general liability policy. That’s why manufacturer’s E&O coverage is crucial for companies that produce goods of any kind.

The types of coverage options will vary depending on what your company’s specific needs are, the policy you choose, and the issuing insurance company. Generally, E&O insurance covers:

Oversights, errors, or mistakes incurred during work

Professional negligence, material defects, or an omission of important details

Failure to meet a deadline or deliver a service promised to a customer

Breach of contract

Inability to meet a specific standard of care, specifically one outlined by a given profession