Normally sold as a stand-alone professional liability policy, the new manufacturers’ errors and omissions (ME&O) endorsement from Liberty International Underwriters (LIU) marks the first time this coverage can be included in a product recall policy. The new endorsement provides coverage for situations where a third party suffers financial loss due to the insured’s manufacturing error.
With up to $5 million in limits, LIU’s new endorsement makes it easier for agents and brokers to help their clients manage supply chain risks. The policy also helps eliminate coverage gaps that can exist between separate product recall and ME&O policies.
LIU’s ME&O endorsement will cover claims made against the insured for financial loss of others such as loss of profit, additional advertising expenses, shipping, restocking and other related expenses incurred due to the insured’s manufacturing error or omission.
Source: Liberty Mutual Group
Was this article valuable?
Here are more articles you may enjoy.