Customarq General Liability
General Liability insurance is an essential element of any comprehensive insurance program. Chubb’s Customarq policy has kept pace with today’s risks.
With its modular format and breadth of protection for today’s complex risks, Customarq Classic is the package policy that others try to imitate.
Commercial Errors & Omissions Liability
Despite your best effort and hard work, a dissatisfied customer may sue you, alleging mistakes were made. Sometimes the mistakes
aren't even made by you but by a subcontractor you hire. These errors can result in serious financial loss to your client
or other third parties.
In today's business world, companies providing products or services to third parties need protection beyond their general
liability (GL) policies. Among other perils, standard GL policies respond to claims or lawsuits made by third parties for
bodily or physical injury to, or loss of use, of tangible property. However, due to the impaired property exclusion, GL policies
do not provide protection for claims when the insured's product fails to perform without physical damage accompanying that
failure. In addition, GL policies do not respond to claims for injury to intangible property, such as damage to data. Without
Errors & Omissions (E&O) insurance, other financial losses suffered by one of your customers can be detrimental to your company's
Errors & Omissions liability insurance provides essential protection to help you protect your assets when standard GL insurance
does not. Chubb's E&O policy picks up where the GL contract leaves off and can protect you against claims for financial injury
that allege your product failed or that allege you failed to perform services. Errors & Omissions insurance applies not only
to your obligation to pay damages, but also to the costs incurred to defend you.
Companies at Risk
Companies that should purchase Errors & Omissions insurance include those that:
- Manufacture, assemble or install to customer specifications
- Provide design work
- Select raw material for others
- Provide services, advice or instruction to others for a fee
- Subcontract work
- Print, package or deliver materials for clients
- Protection includes claims resulting from wrongful acts by or on behalf of the insured.
- Broad definition of "your product," including goods or products you manufacture, sell, handle or distribute. Protection is
not specific to a particular industry segment.
Select raw material for others
- Broad definition of "your service," which provides protection for services beyond your usual scope of activities. "Your service"
is defined to include activities such as related consulting, staffing, training and other support services.
- Expenses incurred by the insured at our request and pre-and post-judgment interest are supplementary payments, which preserves
your limit of insurance for damages and claim adjustment expenses.
- Our notice of circumstances condition allows you to preserve insurance for adverse circumstances that have not yet resulted
in a claim against you.
- Coverage can extend anywhere in the world, including suits brought outside the United States.
- Extended reporting period for a three-year time period, allowing you the option to preserve insurance in the event your policy
is cancelled, nonrenewed or otherwise discontinued.
- Significant limits available in one policy form.
Why would a company need Commercial Errors & Omissions Insurance? Consider the following scenarios:
A tool and die shop created a mold to be used to make an engine part. However, the mold was not built to specifications. As
a result, the tool and die shop's client could not manufacture the engine part by its deadline and sued the tool and die shop
for lost revenue and expenses. Damagers were $750,000, and expenses cost $65,000.
A name-brand clothing manufacturer subcontracted the manufacturing of a new line of children's clothing to a facility in Central
America. The clothing line was sold to retail stores on the West Coast. Upon receiving numerous customer complaints about
clothes shrinking after being washed, it was determined that an incorrect care label was sewn into the clothes. Two of the
retail stores sued the clothing manufacturer for lost revenue and expenses. Damages were $500,000, and expenses cost $35,000.
A printing company printed and packaged hair accessories for a customer. The adhesive used to seal the packages failed, causing
the product to fall out of its packaging when displayed. The printing company was sued by its customer for lost revenue and
expenses. Damages were $255,000, and expenses cost $55,000.
Service and Strength
Chubb's reputation for outstanding service is built on a consistent track record of performance by its global network of loss
control and claim professionals. Our Loss Control Services risk engineers are experienced in making risk assessments and proposing
practical remediation to help mitigate or prevent losses. Should a loss occur, our exceptional claim service is available
anytime/anywhere in more than 140 languages through a toll-free number or via the Internet.
Our financial strength continues to earn high ratings from A.M. Best, Standard & Poor’s and Moody’s, leading evaluators of
insurance companies. Financial strength, combined with our underwriting expertise and claim service, means you can count on
Chubb to be there when you need us most.
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