Are You Insured For That? If your customer initiates a lawsuit against you alleging intangible property losses, failure of your product to perform, or failure to properly perform a service, are you adequately protected? Chances are you have a gap in your liability insurance program that would leave you vulnerable.
General Liability policies apply to damages for bodily injury, property damage, advertising injury and personal injury. Without Errors & Omissions insurance, other financial losses suffered by one of your customers can be detrimental to your company’s bottom line.
In today’s business world, companies providing products or services to third parties need protection beyond their general liability (GL) policies. Among other perils, standard GL policies respond to claims or lawsuits made by third parties for bodily or physical injury to, or loss of use of, tangible property. However, due to the impaired property exclusion, GL policies do not provide protection for claims when the insured’s product fails to perform without physical damage accompanying that failure. In addition, GL policies do not respond to claims for injury to intangible property, such as damage to data. Companies need Errors & Omissions(E&O) insurance to ensure their assets are adequately protected.
There are a number of other reasons you need E&O protection:
What is Errors & Omissions insurance? Errors & Omissions liability insurance provides essential protection to help you protect your assets when standard GL insurance does not. Chubb’s E&O policy picks up where the GL contract leaves off and can protect you against claims for financial injury that allege your product failed or you failed to perform services. Errors & Omissions insurance applies not only to your obligation to pay damages, but also to the costs incurred to defend you. Why do you need Errors & Omissions insurance? Despite your best effort and hard work, a dissatisfied customer may sue you, alleging mistakes were made. Sometimes the mistakes aren’t even made by you but by a subcontractor you hire. These errors can result in serious financial loss to your client or other third parties.
• As you strive to meet your clients’ varied needs, additional services such as maintenance, installation, design and delivery are often provided, thereby increasing your exposure to Errors & Omissions losses. • While well-written contracts can help protect you against lawsuits, even clear and concise contracts are subject to legal attack. • More and more contracts require Errors & Omissions protection. • An Errors & Omissions lawsuit must be defended against, even if the suit is unfounded and groundless. • As it can be difficult to determine which component part causes a product failure, all part providers in the supply and distribution chain may be sued. • If you do not have Errors & Omissions insurance, your Directors and Officers may be liable for failure to obtain proper insurance. Who is at risk? Companies that should purchase Errors & Omissions insurance include those that: • Manufacture, assemble or install to customer specifications • Provide design work • Select raw material for others • Provide services, advice or instruction to others for a fee • Subcontract work • Print, package or deliver materials for clients
insured OK,I’m for that... right? TOOL AND DIE SHOP A tool and die shop created a mold to be used to make an engine part. However, the mold was not built to specifications. As a result, the tool and die shop’s client could not manufacture the engine part by its deadline and sued the tool and die shop for lost revenue and expenses.
CLOTHING MANUFACTURER A name-brand clothing manufacturer subcontracted the manufacturing of a new line of children’s clothing to a facility in Central America. The clothing line was sold to retail stores on the West Coast. After receiving numerous customer complaints about clothes shrinking after being washed, it was determined that an incorrect care label was sewn into the clothes. Two of the retail stores sued the clothing manufacturer for lost revenue and expenses.
INSTRUMENT MANUFACTURER A manufacturer of microscopes sold an optical microscope to a metallurgical company for a special job it had to perform for a client. The microscope was not calibrated correctly, causing the metallurgical company to give incorrect data to its client. Due to the incorrect data, the metallurgical company’s client used an alloy that did not have the fatigue resistance its product needed, and ultimately, the product did not work properly. The metallurgical company’s client sued both the metallurgical company and the microscope manufacturer for lost revenue and expenses.
insured OK,I’m for that... right? PLASTICS COMPANY A plastics company was contracted to manufacture, print and mail phone cards. After the cards were sent out, it was determined that a critical number was printed incorrectly. The phone card company sued the plastics company for lost revenue and expenses.
JEWELRY MANUFACTURER A jewelry company manufactured hypoallergenic earrings using surgical steel wires and posts. It also made costume jewelry containing nickel. A shipment of the gold-metal-plated nickel earrings were mislabeled as hypoallergenic and sold to a children’s retail store chain. After receiving many complaints from customers, the retail store sent the earrings for testing and found the mistake. The retail store then sued the jewelry company for lost revenue and expenses.
PRINTING COMPANY A printing company printed and packaged hair accessories for a customer. The adhesive used to seal the packages failed, causing the product to fall out of its packaging when displayed. The printing company was sued by its customer for lost revenue and expenses.
...with Chubb, it’s not a problem General liability policies may have some holes that our Errors & Omissions policy can help fill An installation mistake results in loss of income for your customer.
A custom-built and installed product does not perform to contract specifications. Your customer sues for lost profits.
A subcontractor’s error causes your client economic injury.
A design error causes your customer’s product to function improperly, resulting in lost revenue.
A manufacturing error results in loss of revenue for your client.
Why should you buy Chubb’s Commercial Errors & Omissions insurance? Chubb’s E&O insurance product works in concert with our commercial general liability policy to provide an integrated insurance solution. The product supports Chubb’s traditional commercial appetite and focuses on companies that design, develop and manufacture products, as well as those that provide services to others. Take a look at some of our product features: • Protection includes claims for financial injury, including loss of use of others’ tangible or intangible property, such as data and other electronically stored information. • Protection includes claims resulting from wrongful acts by or on behalf of the insured. • Broad definition of “your product,” including goods or products you manufacture, sell, handle or distribute. Protection is not specific to a particular industry segment. • Broad definition of “your service,” which provides protection for services beyond your usual scope of activities. “Your service” is defined to include activities such as related consulting, staffing, training and other support services. • Expenses incurred by the insured at our request and preand post-judgment interest are supplementary payments, which preserves your limit of insurance for damages and claim adjustment expenses.
Improper use of raw materials causes the failure of a product, resulting in loss of your customer’s earnings.
• Our notice of circumstances condition allows you to preserve insurance for adverse circumstances that have not yet resulted in a claim against you. • Coverage can extend anywhere in the world, including suits brought outside the United States. • Extended reporting period for a three-year time period, allowing you the option to preserve insurance in the event your policy is cancelled, nonrenewed or otherwise discontinued. • Significant limits available in one policy form. For printers, an occurrence form and printing correction expenses protection are available.
Take Action Now At Chubb, our underwriters, risk engineers and claims professionals have the knowledge base, along with years of experience, to support your many insurance requirements. To learn more about how Chubb can assist you with your Errors & Omissions needs, contact your Chubb agent or broker today.
Chubb Group of Insurance Companies Whitehouse Station, New Jersey 08889 www.chubb.com
Chubb refers to the insurers of the Chubb Group of Insurance Companies. Not all insurers do business in all jurisdictions. This literature is descriptive only. Actual coverage is subject to the language of the policies as issued. Form 69-01-0001 (Ed. 3/07)
Manufacturers E&O Coverage Summary
...that’s not what I expected ARE YOU KIDDING?
Are You Insured For That? If your customer initiates a laws...
Jan 1, 2017 - Cigna may designate one for you until you make this designation. ... Direct Access to Obstetricians and Gynecologists - You do not need prior authorization ..... Examples of things your plan does not cover, unless required by law or ...
Jan 1, 2018 - completed claim form to CVS Caremark for reimbursement. ..... You may also ask your doctor to fax your prescription by calling 1-888-202-.
Covered California is a registered trademark of the State of California. ..... of Managed Health Care Help at 1-888-466-2219 or visit [email protected]
Jan 1, 2018 - Your plan does not provide coverage for the following except as ... represents that you remain responsible for any amounts that your plan does not cover. ... Abdominoplasty, Panniculectomy, Rhinoplasty, Blepharoplasty, ...
Jan 1, 2018 - What is the overall deductible? In-Network - $800/individual or. $1,600/family; Out-of-Network -. $14,300/individual or $28,600/family. Generally, you must pay all of the costs from providers up to the deductible amount before this plan
ADYJ. 1 of 7. Summary of Benefits and Coverage: What this Plan Covers & What You Pay For Covered Services. Coverage Period: Based on group plan year.
Sep 1, 2016 - other than those through the. Sav-Rx specialty program. Even though you pay these expenses, they don't count toward the outâofâpocket limit.
The concept and applications of Electrolyzed Oxidized (EO) water are not new. EO water has been used extensively in Asia (especially Japan) for more than 25 ...
Resolution approving the settlement of the unlitigated claim filed by North Coast County Water District against San Francisco for $86,247.48; claim was filed on ...
Buy best fuel, lubricant, gasoline additives from top fuel, lubricant additives manufacturers and suppliers, who manufacture and supply high quality fuel, lubricant additives used by oil and petroleum industries.
Phone: 1-800-367-1448 l Fax: 1-877-638-1741 www.onlinehsa.com. A home is one of the largest investments a person will ever make, and it's important to ...
Jul 29, 2017 - the twenty-eighth day of July, two thousand seventeen is reasonably likely to produce a volume of claims that significantly exceeds the number ...
Aug 13, 2010 - sa difusion descubren valores Y llagas sociales â¢â¢â¢ Movimientos a escala mun- dial ("preferentemente dE tipo .juveni1 Y obrero que con demaisada facili- ...... combinacion de los metodos Billings y termometrico (observacion de la
Single-bucket excavator EO-3223 is multipurpose all-round hydraulic machine. It is designed for creation, cleaning of reclamation canals and water facilities, also for loading and unloading of loose materials, broken rocky materials and frozen soils.
Vicarious Liability Coverage â The Policy provides coverage for the Insured if named in a claim in connection with the Outside Service Provider or Independent ...
In Florida, the service contract is administered by Interstate National Dealer. Services of Florida, Inc. FLORIDA LICENSE NO. 60088. AAG-909 (4/15). PROTECT ...
Jun 3, 2015 - Innove Communication (Islacom - Globe non-mobile). Yes. Nextel Com. (non-mobile). Yes. Smart Communications Inc. Yes. Poland. 48. PLAY (Netia Mobile). Yes. PTK Centertel (IDEA / Orange). Yes. Polkomtel (Sami-Swoi). Yes. Polska Telefonia
OJK juga akan menggelar Indonesia International Conference on Islamic Finance pada 29 September 2016 di Hotel Fairmont, Jakarta. Dalam konferensi tersebut akan dibahas mengenai tantangan industri keuangan syariah dalam menghadapi siklus new normal er
Apr 22, 2014 - Manda D'Agata, Managing Director, Finance Division. â¢ Chris Van Woeart, Vice President, Finance Division. â¢ Edward Wilson, Managing Director, Securities Division. â¢ Alex Evis, Managing Director, Securities Division. â¢ Kevin Byr
Aug 23, 2017 - We believe new customer acquisition and the expanding share of TRID in the global textile market should help the bed linen segment increase utilization to 60% in FY20. Initiating Coverage | Sector: Textiles. Trident. CMP: INR82. TP: IN