Protecting Manufacturers: The Critical Role of E&O Insurance

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By Jude Sedliak, RPLU
Senior Vice President, Underwriting, Berkley Service Professionals, a Berkley Company

October 21, 2024

In today’s rapidly evolving technology landscape, the demand for products like computer chips, semiconductors, electric vehicle batteries and embedded software is skyrocketing. This surge presents significant opportunities for manufacturers, but it also introduces a range of professional liability exposures that many manufacturers may not fully understand. As brokers, it’s crucial to educate your clients about the importance of Manufacturers Errors and Omissions (E&O) insurance to safeguard their businesses against these risks.

Catalysts for Industry Growth
The manufacturing sector is experiencing unprecedented growth, driven by federal initiatives such as the Infrastructure Investment and Jobs Act (IIJA), the CHIPS Act, and the Inflation Reduction Act (IRA). According to Deloitte’s 2024 Manufacturing Industry Outlook*, investments in semiconductor and clean technology manufacturing have surged, with commitments nearly doubling in 2021 compared to 2019. Additionally, around 200 new clean technology manufacturing facilities have been announced since the IRA’s passage, representing an $88 billion investment.

Manufacturers are under pressure to accelerate product development and enhance delivery efficiency. However, in their pursuit of growth and efficiency, manufacturers may overlook the professional liability exposures that can arise during the manufacturing process.

Protecting the Client’s Business
While most manufacturers are aware of risks like property damage or bodily injury, they may be less familiar with the professional exposures related to negligence, defective products, design flaws, or quality control issues. This is where Manufacturers E&O insurance becomes indispensable. It protects companies from third-party financial losses and litigation resulting from alleged product or work defects.

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Berkley Service Professionals, a division of Berkley Alliance Managers, Named in Business Insurance’s Annual Best Places to Work in Insurance

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Glastonbury, Conn., September 10, 2024 – Berkley Service Professionals, a division of Berkley Alliance Managers, a Berkley company, specializing in professional liability insurance for miscellaneous non-medical service professionals, announced it has been named in the annual Best Places to Work in Insurance program, which recognizes 100 employers for their outstanding performance in establishing workplaces where employees can thrive, enjoy their work and help their companies grow.

“We are honored to be recognized for our dedication to cultivating an exceptional work environment,” remarked Stephen L. Porcelli, president, Berkley Service Professionals. “Every day, our employees embody our entrepreneurial values, giving them a voice and the power to drive meaningful change.”

Berkely Service Professionals has been named a Best Places to Work for its commitment to fostering a culture of innovation and collaboration. The company values the input of its employees at all levels, encouraging diverse ideas and opinions and emphasizing personal growth through various learning opportunities. The premium placed on teamwork, ethical conduct, and employee well-being creates an environment where employees feel empowered and valued.

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Berkley Service Professionals Announces New Manufacturers E&O Product

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Glastonbury, Conn. (May 14, 2024) – Berkley Service Professionals, a division of Berkley Alliance Managers, a Berkley company, specializing in professional liability insurance products for miscellaneous non-medical service professionals, announces the launch of their new Manufacturers E&O product.

“As a leader in the miscellaneous professional liability insurance market, we continually look for new ways to meet the needs of our wholesalers, brokers and policyholders,” said Tom Rea, Executive Vice President, Berkley Service Professionals. “We are pleased to expand our product offering to include Manufacturers E&O coverage.”

The Manufacturers E&O product covers two primary risks: damages caused by an alleged product or work defect resulting in a third-party financial loss and any related litigation expenses, excluding bodily injury or property damage. It can help protect a manufacturer from financial loss while also safeguarding its reputation.

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Jude Sedliak Joins Berkley Service Professionals as Vice President of Underwriting

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Glastonbury, Conn. (March 24, 2021) – Jude Sedliak joins Berkley Service Professionals, a division of Berkley Alliance Managers, a Berkley Company as a vice president of underwriting. He is responsible for underwriting primary and excess business within the wholesale insurance community, fostering strong broker relationships and achieving profitable growth for Berkley Service Professionals’ expanding miscellaneous professional liability, insurance and real estate services portfolio.

“Jude’s deep understanding of more than a dozen E&O insurance classes greatly enhances our ability to serve the complex needs of existing clients, while increasing our presence with new markets nationwide,” says Tom Rea, executive vice president of Berkley Service Professionals. “His specialization with numerous professional liability products including miscellaneous professional, real estate and insurance agents will further our goal to meet the ongoing market demands for new endorsements, products and services.”

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Tom Rea Named Executive Vice President of Berkley Service Professionals

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Glastonbury, Conn. (Feb. 4, 2021) – Tom Rea has been named executive vice president of Berkley Service Professionals, a division of Berkley Alliance Managers, a Berkley Company. He is responsible for overseeing the organization’s operations, strategic direction and business development efforts.

“We are excited to welcome Tom,” says Stephen L. Porcelli, president of Berkley Alliance Managers. “He has a strong track record as a leader and innovator in the Miscellaneous Professional Liability Insurance market. Tom joins an outstanding team at Berkley Service Professionals, and together, they have the expertise and experience to enhance our opportunities for profitable growth in this segment.”

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