Dealers Errors & Omissions Coverages appear in policies under various names, Dealers E&O, Consumer Complaint, Dealers Legal Defense, etc. Since there are no "standard" forms, it is essential that the Insurance Producer and Applicant read the form being presented by the particular carrier. Limits are not meaningful if there is no coverage for the incident in the form.

Essentially the idea is to provide the Dealership with coverage for claims made against it where there is no accident involving bodily injury or property damage. These are suit driven claims usually initiated by dealership customers who are dissatisfied with the purchase or repair of an automobile or other dealership service. Claims ¡°triggered¡± under this coverage typically fall under the following categories: Truth in Lending E&O, Truth in Leasing E&O, Title E&O, Odometer E&O, Insurance Agents E&O, and Dealers Legal Defense (otherwise known as Customer Complaint).

In addition to coverage that may be included in the ARM Dealership Package Policy, ARM offers a "stand alone" option for Dealers who already have a Garage Liability Policy but need this coverage because their package either is lacking in sufficient coverage or includes none at all:(Click on Links for Sample Policies)

Application: Automobile Dealer-Miscellaneous Errors and Omissions-Claims Made

Policy Form: Policy Form Automobile Dealer-Miscellaneous Errors and Omissions-Claims Made

The policy provides coverage for the Dealer who is concerned about both the legal expense and the potential damages that may be awarded and is satisfied to allow the insurance carrier to manage and resolve the claim. Coverage is offered on a non-admitted claims-made form. Typical limits are 50,000/500,000. Per claim limit and aggregate can vary up to 1,000,000/1,000,000. Deductibles range from 1,000 up to 1000,000. A co-pay may be used.