What is Error & Ommission Insurance?
Errors and omissions insurance is a professional indemnity insurance
that covers companies and professionals who provide services to clients
that have potential risks. In the event that they are held responsible
for a service they delivered or didn’t deliver that had expected
results, the E&O insurance covers any litigation costs or negligence
Errors and Omissions Insurance may be referred as any of the following:
- E&O Insurance
- Errors Omissions
- Errors & Omissions
- Professional Liability
- Professional Liability Insurance
MDA E&O Policy:
While we do our Utmost to ensure the accuracy of our work, we do realize that on occasion, design errors do occur. We do ask that upon receipt of your work that you do review floor plans, 3ds and Bill of Materials to ensure that the design scope was met. We realize that occasionally, our Dealer's Sales force doesn't have an in depth knowledge of the products being specified. We ask that you do review fabrics, finishes and that the layout you asked for was provided to you accurately - we do not expect you to know in depth product knowledge.
Mahaffey Design Associates offers E & O Insurance on Projects
Designed and Handled from Conception thru Installation Prints being provided by MDA (
Specifications or floor plans altered, handled or revised by dealership
in any way or not ran through Design Checker on AIS projects will not be
covered under E & O Insurance).
E&O Insurances do have a deductible, as do most insurance's. MDA's is $1000.00 - any error that falls below that amount will be paid out by MDA. MDA reserves the right to decide if a claim is to be ran through the E&O Insurance or if it will be paid via MDA Directly.
In cases of Fabric or Finish Errors - MDA will split these errors with our dealers 50/50 - on some specifications the fabrics can get a bit complicated and we ask that you always double check your finishes.
In cases of Product Errors - depending on the error and the reason for the occurrence of the error, a determination will be made as to the payout amount on the error. In a instance where there it is not possible that the dealer could have caught the error, MDA will pay 100% of the error.
Many Manufacturers do provide no charge "double check" on floor plans specified with their products. We ask that you always send the plans to the manufacturers for a double check whenever this service is offered. We can provide the Autocad Plan to you and you may send it to the Manufacturer for review. We appreciate all feedback on these design checks - as we grow and learn from them and become stronger designers and specifiers for our dealers through this process.
AIS - Affordable Interiors Systems - Offers a No Charge Design Check on all projects where their product has been specified. MDA is honored to have a Design Check account with AIS and will send all AIS projects through the Design Check Service for our Dealers as part of our service to you. On occasion, projects have been ordered without our knowledge and errors have occurred which could have been prevented if this Design Check service would have been utilized. Due to this we REQUIRE that all AIS projects are to be ran through AIS Design Check - if a project isn't ran through this service and errors occur, MDA will not pay out on any design errors.
Mahaffey Design Associates has carried E&O Insurance
since opening their doors in 2008.