Chubb’s New E&O Product Helps Fill Gaps and Provides Greater Choice

Chubb’s New E&O Product Helps Fill Gaps and Provides Greater Choice

WARREN, NJ.- Most manufacturers and service providers purchase general liability insurance to help protect them from losses if their products or services cause property damage or bodily injury. Unless they have errors and omissions (E&O) insurance, however, these companies remain exposed to potentially devastating losses stemming from financial damage to others due to the failure of their product to perform or the failure to perform a service.

The Chubb Group of Insurance Companies is now offering all manufacturers and service providers E&O insurance that works in concert with its commercial general liability policy. This new E&O coverage is designed to provide an integrated insurance solution to help businesses better protect businesses’ bottom lines.

Customers also can continue to choose Chubb’s existing E&O offerings, which can be sold on a standalone basis or packaged with other policies, such as employment practices liability and directors and officers liability. The options provide businesses with the flexibility needed to structure a comprehensive commercial insurance program.

“In today’s business world, companies need protection beyond their general liability policies,” said Timothy Ehrhart, vice president of Chubb & Son and global E&O practice leader for Chubb Commercial Insurance. “Despite a company’s best efforts, a dissatisfied customer may sue, alleging serious financial losses due to product errors or the failure to provide services.”

E&O insurance can help pay for losses when a manufacturing, subcontractor or installation error or a product that fails to perform to contractual specifications causes a customer to lose revenue.

“Under increasing pressure to meet expanding customer expectations, many companies are performing services they have not offered before, including delivery, installation, maintenance, upgrades and consulting. These additional services, as well as the legal environment, increase E&O exposures,” said Ehrhart. “By purchasing general liability and E&O insurance, our commercial clients can fill their insurance gaps.”