What does this cover that my general liability policy doesn't?
- Faulty workmanship that you or your employees perform.
- Mistakes made by you or your employees in the design of your work.
- The use of defective materials or products in your work.
Even if a claim is found to be unjustified, you may incur attorney fees and court costs. You may also need to hire new employees to complete other projects while you take care of the legal affairs of a suit. Fort Collins and Loveland business error and omissions insurance will help cover these costs.
Examples of where E & O insurance applies:
- A contractor installs a new furnace in a commercial building, that later malfunctions & causes a fire resulting in $400,000 in damage to the building. The general liability policy covers the $400K of building damage. The contractor was found liable for the furnace / installation costing $48,000. General liability doesn't cover this since it is their work, but E & O coverage would.
- A contractor designs the installation of a whole house water filtration system. A miscalculation in the design causes a leak and some of the walls in the building have to be torn apart to stop the leak and make corrections which cost the contractor $22,000. Not covered by general liability insurance but would be by E & O.
- In early spring a contractor plants sod for a business condo association. One week later, the grass dies from a lawn fungus disease. The contractor had to remove and replace the sod costing $115,000. Not covered by general liability but is covered by E & O.
- A flooring contractor picks up the wrong carpet at the warehouse and installs it in a customer's home. He has to remove and replace with the correct carpet. Total cost - $10,000. Not covered by general liability. Covered by E & O.
Contact us for your general liability insurance, and we will show you the cost both with and without contractors errors and omissions insurance for your Fort Collins and Loveland area business.