Garage Dealers E&O Policy

Leave your comments here on hard to place accounts.

Moderators: Josh, independent guy

Forum rules
Tip: If you are posting a market request, include the state abbreviation in your post title to get better responses.
Post Reply
Insurance Journal Fan
Posts: 2
Joined: Tue Mar 06, 2018 9:42 am

Garage Dealers E&O Policy

Post by christinab » Tue Mar 06, 2018 10:38 am

I am trying to determine if there is coverage for faulty work, e &o, for garage dealers and mechanics. Let's say an oil change goes wrong, and the entire engine of a tractor is destroyed, how can they be covered? It can't be under completed operations because that focuses on liability and damages resulting in work done, when there needs to be coverage of the financial loss when there are not additional damages. I have been looking everywhere for this policy or endorsement, has anyone found any type of coverage similar in NY/NJ?

Insurance Journal Addict
Posts: 42
Joined: Thu Sep 24, 2009 10:58 am

Re: Garage Dealers E&O Policy

Post by gforaker » Thu Mar 08, 2018 12:21 pm

Think again about the situation you are asking about. If you botch the oil change and after you are done, blow the engine, that is not precisely the item you were working on and is likely covered. If you do an engine rebuild and it doesn't run right, then that is not covered.

Think about a brake job. If you do the brake job incorrectly and the brakes squeal or vibrate, the policy will not pay to re-do the brake job. If the brakes later go out and the truck hits a school bus, then product / completed operations covers the resulting damage.

Insurance Journal Fan
Posts: 1
Joined: Mon Mar 12, 2018 10:25 am

Re: Garage Dealers E&O Policy

Post by davidjamesball » Mon Mar 12, 2018 10:28 am

The carriers that specialize in Garage Operations will typically provide this coverage under "Your Work". The work is typically excluded with coverage applying to the concurrent loss.

Post Reply