Interesting E&O risk

Rob · Post by **Rob** » Mon Jan 23, 2006 4:08 pm

A mobile wine bottling company that goes to vineyards with their bottling equipment. They bottle the wine for the vineyard. Customer wants to be sure that if there is property damage due to an error made while bottling that he is covered. His GL carrier advises him no. Submitted to many E&O carriers requesting contingent PD coverage with the E&O and the response is either "no way, too risky for our scope of services" or "we don't see an E&O risk".

Do you see an E&O risk or do you think it would be covered on the GL policy?

surpluslines · Post by **surpluslines** » Tue Jan 24, 2006 11:29 am

Personally, I do not see any E&O exposure. The way you are describing the job is similar to a contractor doing work for the winery. If they damage someting it is GL but if they damage a wine barrel then it sounds like Broad form PD or CCC.

Rob · Post by **Rob** » Tue Jan 24, 2006 11:33 am

surpluslines wrote:Personally, I do not see any E&O exposure. The way you are describing the job is similar to a contractor doing work for the winery. If they damage someting it is GL but if they damage a wine barrel then it sounds like Broad form PD or CCC.

The insured is concerned causing damage to the actual wine during bottling. Their GL carrier advised them there is no coverage if they were to make a mistake while bottling and cause damage to the wine. I'm trying to fill this gap for the insured.

pita3333 · Post by **pita3333** » Wed Jan 25, 2006 12:27 pm

Seems to me that the coverage would be the same as for the bottler that does not enter the vineyards site. I think this is GL and not E&O.

Just my two cents...

Rob · Post by **Rob** » Wed Jan 25, 2006 12:29 pm

Interesting to note that he had an attorney look at his GL policy that told him it would not be covered and the attorney recommended he purchase E&O.

INTLXS · Post by **INTLXS** » Thu Jan 26, 2006 12:17 pm

Interesting risk......

I see it this way:

CCC Exposure - Should most likely be written on a special bailee's type form. Could be done on a manuscript basis. I would look at the markets that write winneries and see if they have a special property type endorsement that could be converted to an inland marine policy.

E&O Exposure - If they are offering any type of professional advice, such as what type of cork to use, the specific bottling process to use, what "blend" formula to use (if it is one of the newer lines of wine that is the blend of two or three types of wine) they would have an E&O exposure. Some of the Misc. E&O markets would consider this if the actual exposure could be defined.

Chubb has a Customarq Program for Wineries

Also see: http://www.kempkey.com/programs/

Let me know if you need any help on this risk.

Kenneth E. Kukral, CIC
President & CEO
International Excess Companies
26451 Curtiss Wright Parkway #103
Cleveland, OH 44143-1437
PH 216-797-9700 Ext 2082
FX 216-797-9970
http://www.internationalexcess.com