Conveyor belt in a large factory
Conveyor belt in a large factory

Manufacturers’ E&O insurance self-audit checklist3 minute read

Manufacturers’ Errors & Omissions (E&O) coverage can help you manage various types of loss scenarios. But how can you control your exposure and reduce the risk of being held liable?

We’ve created a self-audit checklist to help you measure of how effectively you have controlled your potential Manufacturers’ E & O exposure.

Management:


  • Has a Product Safety Committee or Manager been established or appointed?

  • Does it meet at regular intervals?

  • Does it review new products?

  • Are written records kept of its decisions?

  • Are records maintained for the life of the product?

  • Does it have the full authority necessary when potential problems are encountered?


Engineering:


  • Are design decisions recorded?

  • Are tests on models and prototypes recorded?

  • Are mandatory and voluntary standards in use?

  • Are products reviewed by a consultant?


Quality Control:


  • Does the department have a Quality Control Manual?

  • Is it actively used?

  • Is it updated and reviewed on a regular basis?

  • Are records maintained on all inspections?

  • Are records kept on vendors?

  • Are gauges and test equipment regularly calibrated?

  • Are customer complaints handled promptly?

  • Is corrective work documented?

  • Are defective products and parts segregated?

  • Have recall procedures been established?


Manufacturing:


  • Is the reliability of production machinery (lines) reviewed?

  • Is the reject rate on parts reviewed?

  • Is vendor performance evaluated?

  • Are production records maintained daily?


Marketing:


  • Are marketing personnel trained on how to sell the product?

  • Are advertising, sales brochures, manuals, warnings and labels periodically reviewed by the legal department?

  • Are customer complaints documented and conveyed to senior management?


Legal:


  • Has an action plan been established in case of a lawsuit?



Once you’re able to answer ‘yes’ to the questions outlined above, you’ll be well on your way to controlling your Manufacturers’ E & O exposure.

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This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.
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