What is Error & Ommission Insurance?
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 claims.
Errors and Omissions Insurance may be referred as any of the following:
- E&O
- 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 Order Entry being provided Specifications 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). Installation prints are provided as a no charge service and dealers need to review the prints to ensure that they are accurate per the last round of revisions noted in their files. We do not cover installation issues - Only Specification Issues.
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 the Case of Fabric or Finish Errors - MDA will not reimburse for Fabric or Finish Errors. We do not expect anyone to know the detailed parts and pieces that are involved in specifying workstations. Some of the systems products can get part and piece intensive, however fabrics and finishes are something that can be simply and easily checked at the dealership level by even the most novice person. It is the dealers sole responsibility to make sure that the fabric and finishes on the BOM are correct. MDA will no longer reimburse for costs incurred from fabric or finish errors on projects. We will do our outmost to make sure that we apply the correct finishes - but the dealer will be required to be the final reviewer of the BOM for Fabric and Finish accuracy.
MDA also does not pay for installation of product. Installation of product in most cases would be in the original scope of work and should be covered under the original installation quote by your installer.
We provide Floor Core Electrical Locations for Workstations or Conference room Tables. The dealer is responsible for all floor core locations and we are not responsible for issues with floor cores in the field. We are not on site and have no control over the many factors that impact a floor core being located correctly.
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.