Contractors E&O

Contractors Errors & Omissions (E&O) covers claims related to:

• Faulty workmanship: This includes errors in the construction process that lead to defects or damages.
• Design defects: If a contractor provides design services and there are errors in those designs, E&O can help cover the costs of fixing the issues.
• Defective materials: If a contractor uses faulty materials that cause damage or loss, E&O insurance can help cover the costs.
• Breach of contract: If a contractor fails to fulfill the terms of a contract, E&O insurance can help cover the resulting financial losses.

What E&O doesn’t cover:

• Intentional misconduct or fraud: E&O insurance is designed to cover unintentional mistakes, not deliberate wrongdoing.
• Bodily injury or property damage: These types of claims are typically covered by general liability insurance, not E&O.
• Employee injuries: Workers’ compensation insurance covers employee injuries.

Who needs E&O insurance?

While not all contractors need E&O insurance, it’s highly recommended for those who:

• Provide design services
• Work on complex projects
• Have high-value contracts
• Work in specialized trades

Benefits of E&O insurance:

• Financial protection: E&O insurance can help cover legal fees, settlements, and judgments related to covered claims.
• Reputation protection: Having E&O insurance can demonstrate professionalism and commitment to quality to clients.
• Peace of mind: Knowing you have financial protection in case of an error can provide valuable peace of mind.