Here are the top three trends manufacturers should be aware of:
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Value added services
To keep up with the competitive market, an increased number of manufacturers are offering valued added services alongside their core products. This includes providing the product design, advising on supply chain logistics, installing and maintaining manufactured items and even training on product usage. While these services can differentiate themselves from their competitors, they also increase exposure to E&O claims, as errors in these additional services can lead to significant financial loss for clients.
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Technology introduction
The integration of advanced technology in both the manufacturing process and the products themselves is on the rise. While this technological advancement brings innovation, it also introduces complexity. As products become more intricate and manufacturing processes more tech-driven the risk of the products failure to perform as well as technology errors increases. These errors could result in a faulty product, amplifying the potential for costly E&O claims.
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Contract requirements
There is a growing trend in contractual agreements requiring manufacturers to carry professional liability insurance. This requirement is becoming increasingly common as businesses seek to mitigate risks associated with third-party financial losses. As more contracts include these provisions, manufacturers must ensure their E&O policies are comprehensive enough to cover both technology-related and human errors in the manufacturing process.
In light of these trends, it’s crucial for manufacturers to have comprehensive E&O coverage that addresses the unique risks they face. CFC’s manufacturer’s professional policy is specifically designed to cover both technology and human errors, providing peace of mind in an increasingly complex industry.
If you have any questions about E&O insurance for manufacturers, please get in touch with the US professions team by emailing professions@cfc.com.
