Garage Dealers E&O Policy

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christinab
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Garage Dealers E&O Policy

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

Hi,
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?

gforaker
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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.

davidjamesball
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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.

christinab
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Re: Garage Dealers E&O Policy

Post by christinab » Mon Apr 09, 2018 11:14 am

That doesn't entirely answer the question I am asking, I am aware of completed operations and when that coverage is applicable, but I am saying in an instance where work that is done in the garage is incorrect and results in immediate property damage, and a financial loss. Not just the completed and responsive liability and damage much later.
I understand "your work" and "faulty work" are always exclusions as well, but I am trying to see if an endorsement or policy exists to cover financial loss or property damage as a result of an immediate job. I have heard of people saying they are covered but I have never actually seen the policy that explicitly lists that. Please let me know if you have seen anything.

Schl1234
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Re: Garage Dealers E&O Policy

Post by Schl1234 » Wed Apr 25, 2018 9:59 am

Hi! So having defined that prod and completed ops in this space isn't necessarily the same as E&O, there is an E&O for dealers that is designed to protect gainst suits usually driven by customers who are dissatisfied with the purchase or repair of a vehicle or other dealership service because of an alleged error or omission. Lawsuits can encompass everything from alleged rolled-back odometers to misleading advertising, failure to disclose prior damage, failure to file liens, submitting inaccurate paperwork to the DMV, not performing a title search, and truth in lending and leasing laws.

However, I wonder if you are looking for yet another type of E&O? Ive wondered as well about this. Typical E&O covers the financial loss, usually as a result of giving poor advice, or conversely, failing to give advice that results in loss. So what happens if a DYI'er is working on their car in the driveway, and they call the garage or auto parts store for advice? If the garage tells the caller incorrectly, or fails to tell them something important, and the engine blows up, or something breaks loose causing an accident, is there coverage? What about the failure of the garage to tell the customer of a car they just worked on, some crucial information about the repair? Or a garage that does an inspection and fails to identify a danger that later results in an accident, or even simply further damage to the customers car? Seems like a garage E&O would be a good idea, if there isn't someone offering it already?

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