E&O insurance question

mspicka

Member
Location
Colorado
Occupation
Owner
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
 

mspicka

Member
Location
Colorado
Occupation
Owner
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.
 

mspicka

Member
Location
Colorado
Occupation
Owner
I assumed Liability covered also?

From my quick search Liability Insurance is the same.
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.

 

AC\DC

Senior Member
Location
Florence,Oregon,Lane
Occupation
EC
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 ;)
 
Last edited:

mspicka

Member
Location
Colorado
Occupation
Owner
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 ;)
Glad to see you at now calm...
 

mspicka

Member
Location
Colorado
Occupation
Owner
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.
 

augie47

Moderator
Staff member
Location
Tennessee
Occupation
State Electrical Inspector (Retired)
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.....
 

Fred B

Senior Member
Location
Upstate, NY
Occupation
Electrician
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.....
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.)
 

mspicka

Member
Location
Colorado
Occupation
Owner
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.....
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.
 

mspicka

Member
Location
Colorado
Occupation
Owner
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.)
You can run yourself out of business if you dont know what is covered and what is not. Learn insurance!
 
Top