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Contractors Errors & Omissions Coverage, and Why Your Business Needs It

By July 27, 2020December 1st, 2022No Comments

Contractors Errors & Omissions (E & O) coverage is protection for claims when a contractor’s work is allegedly faulty or defective, and is installed or incorporated into other products or property causing a loss associated with the replacement or reworking of the defective work.

In other words, Contractors Errors & Omissions coverage protects your work when there are claims of carelessness or mistakes. This policy type provides protection in addition to that typically offered by general liability insurance.


Carpet Installer — A flooring contractor picks up the wrong carpet at the dealer and mistakenly installs it in a customer’s home. The installer has to remove the incorrect carpet and replace it with the correct product. Total contractor loss: $3,000.

Fence Erection — A fencing contractor misreads the site plan while installing a fence. As a result, the fence is installed significantly over the property line. The fence has to be removed and reinstalled. Total contractor loss: $35,000.

Without Contractors Errors & Omissions Coverage, you can potentially face costly financial losses, as well as losses to your reputation. Make sure your business is fully protected with this valuable additional coverage.

How can you make sure you’re covered? Look to Merchants and our contractors programs that provide flexible coverages to meet the needs of today’s contractors. Talk with your independent insurance agent to learn more.

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Merchants Insurance Group

Merchants Insurance Group

Merchants Insurance Group sells its products through a network of more than 1,000 independent insurance agents in Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, and Vermont. We sell our products through independent insurance agents because we believe they provide value to policyholders through their broad range of products and their insurance expertise.