Insurance Protection

Why You Should Consider Manufacturers E&O Liability Protection

As a business professional, you know your company is vulnerable to losses. In the event your product hurts someone or damages property, general liability insurance can protect your business against a claim. However, what if you’re sued for an error or mistake in the product manufacturing that does NOT cause bodily injury or property damage yet causes financial loss to your client? Manufacturers errors and omissions (E&O) liability insurance is available to bridge a potential gap in your coverage. Manufacturers E&O is designed to pay financial damages to a third party resulting from negligence in manufacturing or designing your product. E&O liability coverage can protect your business from mistakes such as design errors, installation mistakes, improper use of raw materials, subcontractor error or product failure. Today, many insurance carriers also include coverage due to a wrongful act, such as breach of duty, neglect or misleading statements.

Some questions to consider include:

• Have you ever sold a product that just didn’t work right?
• What if your customer can’t produce their final product because your component did not work?
• Have your clients ever experienced down time because your product didn’t perform as intended?
• Have you ever manufactured a component product that did not meet customer specifications?

All types of manufacturing businesses may be at risk. Our insurance carriers offer flexible limits of coverage ranging from as low as $25,000 per claim up to $10,000,000 per claim. Deductibles on a per claim basis can range from $1,000 to $100,000. Typically, defense costs are included within these limits.

As our business world becomes more fast-paced, errors or mistakes are likely to occur and the financial losses can be devastating. Fortunately, many of the insurance carriers we represent are developing insurance products that provide the right protection for our manufacturing clients.

An experienced business insurance consulting team, like Univest Insurance, can identify which strategies are best for your company and create a roadmap to implement them successfully. To discuss how we can help you determine the best approach, please contact us at 800-220-3077 or

Insurance products offered through Univest Insurance, Inc. are obligations of the issuing insurance companies, not obligations or deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the United States.

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