Do your sales representatives have adequate insurance coverage? If not, your manufacturing business may be at financial risk. Sales representatives are a critical piece to the manufacturing and sales process, however as a manufacturer your assets could be on the line should a claim arise out of their actions.
There are several important coverages to consider requiring:
- Professional Liability aka Errors and Omissions Coverage
- If sales representative misrepresents a product or makes promises they can’t fulfill, that claim could hit your bottom line if the client claims a loss of income as a result. An E&O policy would cover and defend for this type of loss and prevent it from hitting your wallet.
- Business Auto Policy
- Many personal auto policies will decline coverage should an accident occur while on the job. Should it be discovered that a sales rep was driving to a client, rest assured the manufacturer will be named in the lawsuit as will. A business auto policy would provide certain protection and higher limits than your typical personal auto policy.
- General Liability
- Accidents happen. If a rep is responsible for property damage or bodily injury while on the job, you would want them to have their own policy to cover it. This is particularly important if your manufacturer representative demo your products.
- Workers Compensation
- Believe it or not, there have been lawsuits won by independent contractors against employers that reclassify them as employees and entitle them to workers compensation benefits. If they have their own coverage to begin with, these types of suits can be avoided.
As an expert in your field, you understand the importance of a having knowledgeable professional you can trust. Give us a call today and we can walk you through coverage and provide you with the insurance program your business needs.
