Contractors’ Errors and Omissions

Artisan contractors are experts at what they do and expect to complete their projects without mistakes. But customers can be quick to allege negligence in a contractor’s work, and narrow margins expose contractors to costly errors. Contractors’ Errors & Omissions (E&O) is a specialized liability coverage to protect for potential exposures resulting from faulty workmanship claims. Consider these real-life scenarios:

  • A contractor is hired to pave a driveway and completes the project. Three days later the customer reports that the driveway is starting to crack and, upon investigation, it is found that the concrete mixture was incorrect. It is the responsibility of the contractor to replace that driveway. Contractors’ E&O would provide coverage for the additional expenses to repave that driveway.
  • A contractor installs a new floor. After a few weeks, the floor begins to buckle and it is determined that the underlayment was applied incorrectly. That portion of the floor will need to be replaced. The contractor is responsible for correcting this work and E&O coverage would help to pay the expenses.

E&O claims commonly affect contractors and lawsuits can be costly. Without Contractors’ E&O coverage, the result can be high out-of-pocket expenses. Watch this video.

Click here to hear more about Contractors’ E&O coverage from Society underwriters.

Contact your local Society agent to learn more about protecting your business with comprehensive contractors insurance.

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As a mutual insurance company, we operate and exist for the benefit of our policyholders. For more than 100 years, Society has been helping businesses overcome the unexpected with comprehensive coverage packages and outstanding claims handling, underwriting and risk management.

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