Professional Liability Insurance (also known as Errors and Omissions coverage) protects the work or product a business provides. Most general liability policies exclude “your work,” “your product” and “impaired property.” Professional liability insurance coverage provides coverage for all of these excluded categories when an inevitable mistake is made.
Below are some examples of potential professional (E&O) claim scenarios for solar businesses:
Scenario 1: Company A designs and installs a solar panel system for a local business. When something goes wrong with the system the business calls a different company, Company B, to come and fix the solar panel system. Due to a design flaw on Company A’s behalf, the work Company B does to repair the solar panel causes further damage. A professional liability policy could protect Company A should Company B file a lawsuit for Company A’s flawed design work.
Scenario 2: A local solar company installs a solar panel system for a newly married couple with the promise of a $200 monthly savings on their electric bills. A couple of months after the system is installed the couple realizes they are only saving about $10 a month. A professional liability policy could protect the solar company in the event the couple files a lawsuit.
Scenario 3: Solar company A sells a system design to Solar company B. Solar company B uses Company A’s design to install a solar panel system for a local business. The design turns out to be flawed. A professional liability policy could protect solar company A should solar company B decide to file a lawsuit for the flawed design they purchased.
Please feel free to contact our office with any questions you have have about professional liability insurance. We’d love to review your current insurance program to make sure you have proper coverage in place.