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Manufacturer’s Errors and Omissions Insurance (Professional Liability)

Manufacturer’s errors and omissions insurance (professional liability) covers you as the manufacturer, for claims made against you concerning your client's financial loss resulting from your defective product or the failure to perform of the product, even if there is no bodily injury or property damage.

Who is Exposed to This Risk?

Businesses operating in the following sectors of activity:

  • Product manufacturing, assembly or installation according to client requirements;
  • Product design;
  • Raw material purchase for third party;
  • Billed services, consulting or guidelines offered to third party;
  • Subcontracting work;
  • Printing, packaging or delivering materials or stocks for customers.

Who Will Cover the Financial Loss Claim Brought Against You?

A manufacturer's product can fail for various reasons: manufacturing defects, faulty components or non-respect of the client’s manufacturing specifications and design.

The "Comprehensive general liability" policy covers third-party financial losses, however people often overlook the fact that the policy does not cover this risk if there is no bodily injury or property damage involved.

In other words, a manufacturer will be left with no coverage if their client suffers from financial loss without bodily injury or property damage.

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