Even though you work hard as a contractor to provide your customers with professional service and excellent work, occasionally things go wrong. Pre-planning with the W.E. Davis Insurance Agency can help your business in the bad times. An important coverage we often recommend is Contractors Errors and Omissions (E&O) Coverage.
In today’s competitive and litigious environment, small contractors face many potential hazards. Customer’s expectations are greater than ever before, and they are quick to blame their contractor when things go wrong. Even simple complaints have the potential to escalate into legal disputes. The competitive market and difficult economy put further pressure on contractors to do more jobs within narrower margins, exposing them to costly errors in their work product.
Most contractors have General Liability insurance (GL) policies, but these exclude “your work,” “your product” and “impaired property.” Contractors Errors & Omissions Insurance helps to fill in this coverage gap.
Consider these potential claims not covered by General Liability Insurance:
- Your employee completes a plumbing job on a new building and after it’s occupied, you find out the piping you used has been recalled because of defect
- Your company installs underground tanks in the wrong place at a job site. After you completed the project, you are asked to return to pump the contents, remove the tank from its current location and reinstall the tank in the correct location
- You design and install an electrical system with wiring under the concrete ground floor for a new store. After the store opens, the owner asks you to correct a flaw; the wiring can’t handle the power load
- You incorrectly install an air conditioning unit. You are called back after the project is complete to reroute the ductwork and replace the unit.
Your backup plan
Your Contractors E&O Coverage helps protect you after you complete a job and you are held responsible for faulty:
There is even extra help for your defense
We will pay the needed legal fees to defend you against a covered claim in addition to your policy amount on your Contractors E&O Coverage.
Covering your past work
In certain situations, your Contractors E&O Coverage can provide protection for problems with work you performed before your current policy began. It’s called prior acts coverage. Talk to your local Cincinnati independent insurance agent now to learn about all the details and to help you plan ahead with the right insurance protection.