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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.
There just is no substitute for
reading the policies!!!!! |
