Problems in production? Cover your tracks
You’re great at your job, but everybody makes mistakes. If your equipment manufacturing company was responsible for suppling defective gears to a manufacturer of drilling rigs, rendering the rigs inoperable, that manufacturer could come to you to cover the loss. You haven’t caused any property damage to the rigs, but they can’t be used until the gears are repaired or replaced, and that will put the project (and potential revenue) on hold.
Errors and Omissions (E&O) coverage can take care of some expenses that your defective product can bring. This extension addresses the financial loss of third parties when your product renders their product unusable, and you can request higher limits to supplement your Commercial General Liability Policy.