It seems like cars and trucks get more complex every year. A job as simple as replacing fluid can call for precise measurements and even computer controls. And it also requires comprehensive protection against a mistake — an error or omission. Certified mechanics can benefit from this expanded coverage.
Errors and Omissions
This coverage applies to errors, omissions, and defects related to work as an auto service facility, or to products sold or installed by covered employees.
There is a $10,000 annual aggregate per location limit, a $25,000 annual policy aggregate limit, and a $250 deductible per occurrence limit.
Note that mechanics must be certified in order to be eligible for this coverage.
Loss or Damage to Customer Vehicles
This optional coverage can be expanded to customers as well as your auto service facility and staff.
Talk to your independent insurance agent for a quote on coverage, and for more details on what Hastings Mutual can do for you.
To err is Human; to Forgive, Divine. – Alexander Pope
We all make mistakes, but some are more serious than others. A mistake can be expensive if you’re a professional contractor and you’re working with poor-quality materials, or if your crew doesn’t do the high-quality work you expect them to.
Errors and omissions insurance, better known as E&O, is what you need if something goes wrong — if there’s an error (a mistake), omission (something accidentally left out of an agreement), or negligent act (something that was missed or not reported).
But what about a general liability policy, another similar type of policy that Hastings Mutual also offers? General liability coverage is just that: general. It applies to most situations a business owner might be in, like a homeowner who’s accidentally hurt by one of your employees. It can also apply to injuries caused by advertising — not from a falling billboard, but libel, slander, or other written or spoken harm. There’s a lot more to it, but putting it simply: general liability has to do with getting injured, damaging property, or causing harm to a company’s reputation. E&O has to do with making a mistake.
E&O is common for professionals in many industries — insurance companies have E&O coverage for themselves — but Hastings Mutual specializes in E&O for contractors and for mechanics. Why? It’s a field with many workers who deal with a lot of risk every day. We’re also familiar with contractors and mechanics and the kind of work they do; we offer coverage for several different types.
We encourage every business customer to talk with their independent insurance agent about errors and omissions coverage. A contractor might not think of it when buying their insurance; a builder will definitely need protection if someone is hurt on the job, but they might assume the costs of repairing a mistake are just part of the cost of doing business. Mistakes are made, but the expense of getting the job done the right way doesn’t have to fall on a contractor or mechanic’s shoulders.
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