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What Errors & Omissions Coverage Means to Auto Body Shop Owners
Ever wonder if your current insurance program has any gaps in coverage? Are you able to think about scenarios in your head and confidently say, "Yes, that is covered"? Constant technology updates has forced the insurance industry to adapt their policies to ensure they are properly covering you and your business. I am here today to help you understand some of these changes.
You may have heard the term, Errors & Omissions (E&O) insurance in passing. But what does that type of coverage do for YOU? To break it down in its simplest form - It protects your business from any error or mistake made by an employee while working on a customer’s car.
For example, your employee, Bill was servicing a car and completed a tire change. The customer came to the shop, picked up the vehicle and then drove two blocks and was involved in a car accident. The police determined that the accident was caused by the tire change that was performed at your shop.
Where does your insurance policy kick in? General Liability would protect the business for physical damage done to your customer’s car. What would NOT be covered, if you did not purchase E&O, would be the "faulty" work provided by your employee, Bill. In this case, the replacement of the tires would NOT be covered and would need to come out of your business’ pocket. Had you purchased E&O coverage, the cost to replace the "faulty work" and all tires that were damaged in the accident would have been covered.
An auto shop relies heavily on their employees ability to perform jobs safely and efficiently along with providing excellent customer service. E&O coverage not only protects your business from financial loss but also allows you to keep your customers happy and let them know you have their best interest.
If you would like a comprehensive review on your insurance program, I would gladly welcome the opportunity to see if I can identify any gaps in coverage or reduce your costs.
Harry Johnson |Account Executive
Cook and Kocher Insurance Group, Inc.
300 S. Northwest Highway, Suite 208
Park Ridge, IL 60068
P: (847) 692-9200
F: (847) 692-9299
C: (847) 460-8118
harryj@cookandkocher.com