Manufacturers’ E&O insurance self-audit checklist
Manufacturers’ Errors & Omissions (E&O) coverage can help you manage various types of loss scenarios. But how can you control your exposure and reduce the risk of being held liable?
We’ve created a self-audit checklist to help you measure of how effectively you have controlled your potential Manufacturers’ E & O exposure.
- Has a Product Safety Committee or Manager been established or appointed?
- Does it meet at regular intervals?
- Does it review new products?
- Are written records kept of its decisions?
- Are records maintained for the life of the product?
- Does it have the full authority necessary when potential problems are encountered?
- Are design decisions recorded?
- Are tests on models and prototypes recorded?
- Are mandatory and voluntary standards in use?
- Are products reviewed by a consultant?
- Does the department have a Quality Control Manual?
- Is it actively used?
- Is it updated and reviewed on a regular basis?
- Are records maintained on all inspections?
- Are records kept on vendors?
- Are gauges and test equipment regularly calibrated?
- Are customer complaints handled promptly?
- Is corrective work documented?
- Are defective products and parts segregated?
- Have recall procedures been established?
- Is the reliability of production machinery (lines) reviewed?
- Is the reject rate on parts reviewed?
- Is vendor performance evaluated?
- Are production records maintained daily?
- Are marketing personnel trained on how to sell the product?
- Are advertising, sales brochures, manuals, warnings and labels periodically reviewed by the legal department?
- Are customer complaints documented and conveyed to senior management?
- Has an action plan been established in case of a lawsuit?
Once you’re able to answer ‘yes’ to the questions outlined above, you’ll be well on your way to controlling your Manufacturers’ E & O exposure.