Solar panel manufacturers E & O
An Error and Omission insurance is a professional policy that helps a manufacturer cover for negligence production or service. Certainly, the claim involves the most important part of the relationship; the customer. It is possible to maintain a successful relationship even during a claim while continuing to build others. It is true when there is a third party financial loss without property or bodily injury. Moreover, buying an E & O insurance policy is a judicious move, as it helps in differentiating a company from others.
What does the policy cover?
E & O insurance for solar panel manufacturers covers damages occurred due to the following reasons:
• Incorrect, poor, and faulty manufactured products
• A defect in material, which also includes property damage to the work, product, and impaired property
• Negligence in delivering promised product or service
• Defense costs
• Wrongful business practice
• Misleading advice
Customers are likely to recuperate the financial loss through litigation due to negligent delivery of the product/service. Therefore, if the lawsuit is lost, the E & O insurance provides a significant breather by lessening the financial risk.
Key coverage offered by E & O
There is an increase in dedicated solar manufacturers E & O forms in the market apart from tailor-made arrangements. The critical factors covered under the insurance include:
4. Selling or reselling
5. Plan specification
10. Instructions for using and maintaining the product
Certainly, the challenges faced by the manufacturers are unique and often differ according to the contract. Therefore, it is a benefit to possess the right E & O coverage that helps in addressing an issue when the need arises.
Why the need for E & O?
Even though a manufacturer has a Commercial General Liability policy, it does not provide complete protection. For example, the CGL covers loss only when the manufacturing error causes property or bodily damages. For solar panel manufacturer where the failure is due to design, development, or other stated reasons as above, E & O insurance comes to the aid.
The E & O policy varies according to the manufacturer’s capacity, services rendered, financial stability, and policy limits. Therefore, it is essential to approach an experienced agent before purchasing a policy. In addition, buying the plan is on an annual basis and is subject to changes according to the insurance provider. Also, it is necessary to make a claim against the company to receive compensation within the policy tenure.