Mechanic's Errors and Omissions Coverage
Mechanic’s errors and omissions coverage is a coverage that extends Garagekeeper’s insurance to cover faulty work by a mechanic or damage to a vehicle resulting in defective parts. Garagekeeper’s insurance will cover comprehensive and collision claims, but there is a specific exclusion for faulty work performed or faulty products that result in a loss. Take the below scenario into consideration:
A mechanic is working on performing an oil change, removes the oil drain plug bolt, drains all the oil from the engine, and then starts a conversation another employee. After the conversation ends, the employee proceeds to fill the engine with oil, but forgot to re-install the oil drain plug bolt. The employee starts the engine, and after a couple of minutes throws a rod, damaging the engine.
The resulting damage to the engine would not be covered in a typical garagekeeper’s policy, as this is caused by faulty work performed. Many mechanic E&O claims require as low as a $250 deductible, potentially saving your business thousands of dollars on a new engine.
Click the "Get a Quote" tab on our website to have one of our insurance experts discuss whether you need a policy that includes Mechanic’s E&O coverage, and to discuss the potential risks that your garage may have for a loss caused by faulty work or parts.