A mechanic is working on a vehicle’s computer system, but forgets to disconnect the battery. The computer shorts out, which requires total replacement of the computer system. Mistakes happen. But when it involves vehicles, mistakes can be costly! Consider these real-life scenarios:
A body shop technician is working on a vehicle and accidentally sands through the panel. The panel can no longer be repaired and needs to be replaced.
A mechanic is working on the electric motor for a power window and does not adjust the window properly, breaking the glass.
A technician is adjusting the convertible top on an expensive sports car. In the process, the fabric top is damaged and needs to be replaced.
If a business does not have Mechanics’ Errors and Omissions (E&O) coverage from Society Insurance, they will likely be left to pay for these damages out of pocket. This is a small detail that protects auto service professionals from costly mistakes.
On most basic garage policies, only the resulting damage from an error or omission is covered — not the actual product being worked on. For a small premium, Mechanics’ E&O eliminates the Work You Performed exclusion and makes a big difference in the event of a costly mistake.
Contact BANKIOWA Insurance to learn more about protecting your business against E&O claims and comprehensive Auto Service & Garage insurance.
Article courtesy of Society Insurance