E&O insurance question

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mspicka

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Location
Colorado
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Journeyman Electrician
Can anyone explain why I would need Errors and Omission insurance?

I am told the has to do with design build type projects. Most permits require an engineer stamp to pull a permit. Is this protection used in case either no permit is pulled or the authority does not require a stamp?

Trying to understand why I would need this?

Thank you
 
Yea, I just did more research and am now schooled between, General Liability vs E&O. I assumed general liability covered it, but it does not.
 
AC\DC said:
I assumed Liability covered also?

From my quick search Liability Insurance is the same.
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What I was told is that General Liability covers if someone enters your building and slips and falls. E&O covers bad workmanship that ends in damages.

advisorsmith.com

Contractors Errors & Omissions Insurance: Coverage & Quotes

Contractors Errors and Omissions Insurance (Contractors E&O) protects the value of a trade contractor’s work from damage caused by mistakes, negligence, and faulty workmanship. Learn more and compare quotes.
advisorsmith.com advisorsmith.com
 
I guess your wright
From what my company told me E&O is for bad workmanship. Such as you install a Stub up in the middle of an isle of a grocery store and now you have to jackhammer it up and move it and refinish floor. That is what E&O is for.
General Liability is if you Kill or Destroy property.
My General Liability has 50k for E&O. I got to remember to keep mess up under that amount ;)
 
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AC\DC said:
I guess your wright
From what my company told me E&O is for bad workmanship. Such as you install a Stub up in the middle of an isle of a grocery store and now you have to jackhammer it up and move it and refinish floor. That is what E&O is for.
General Liability is if you Kill or Destroy property.
My General Liability has 50k for E&O. I got to remember to keep mess up under that amount ;)
Click to expand...
Glad to see you at now calm...
 
I have been discussing this with another insurance agent. Please do not use any the above as gospel. I have received different answers from different people.

The latest a that E&O has nothing to do with any errors and emissions that an electrician makes. General Liability is used for that. Electricians buy E&O for the pollution part of the policy. Some GCs require this, so that if you cause an pollution incident, you have coverage.

I am still learning about insurance coverage so please educate yourself fully with a qualified insurance agent.
 
Insurance always seems to cover everything EXCEPT the particular conditions surrounding your situation...... and then there is always the deductible in the event you are covered.....
 
augie47 said:
Insurance always seems to cover everything EXCEPT the particular conditions surrounding your situation...... and then there is always the deductible in the event you are covered.....
Click to expand...
Ever really look at the policy. 2 pages of what they'll cover and 50 pages of exceptions.
"That" would be covered but only if it's the 3rd Wednesday and a full moon on a month that has no R's. (At least it seems that way.)
 
augie47 said:
Insurance always seems to cover everything EXCEPT the particular conditions surrounding your situation...... and then there is always the deductible in the event you are covered.....
Click to expand...
Yea, This is why you need the right insurance agent. Go over situations that are possible and be sure you are covered. No wonder it cost so much to hire the trades, we need a lot of types of insurance.
 
Fred B said:
Ever really look at the policy. 2 pages of what they'll cover and 50 pages of exceptions.
"That" would be covered but only if it's the 3rd Wednesday and a full moon on a month that has no R's. (At least it seems that way.)
Click to expand...
You can run yourself out of business if you dont know what is covered and what is not. Learn insurance!
 
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