What is a Dealership Errors & Omissions Claim?
Whenever a dealership makes a mistake in the sale of a vehicle, the Dealership should have Errors and Omissions insurance. The insurance policy most often will provide coverage for the dealership from claims arising from mistakes, errors, or negligence in their business practices. We will assist you in making a claim against the dealership and to make you whole.
Dealership Errors & Omissions in Illinois
In Illinois, Dealership Errors & Omissions (E&O) insurance is a crucial aspect of risk management for car dealerships. This specialized professional liability insurance provides protection against claims arising from mistakes, omissions, or negligence in the dealership’s operations.
Importance of Dealership Errors & Omissions
- State Requirements: While Illinois does not have specific state-mandated E&O insurance requirements for dealerships, having this coverage is often essential for regulatory compliance and maintaining good standing with industry standards.
- Coverage for Professional Mistakes: Dealerships in Illinois are exposed to various risks related to vehicle sales, financing, and documentation. E&O insurance covers mistakes such as misrepresentations of a vehicle’s condition, errors in loan applications, or incorrect title transfers.
- Protection Against Lawsuits: If a dealership faces a lawsuit due to alleged errors or omissions, E&O insurance covers legal defense costs, including attorney fees and court expenses, which can be substantial.
- Coverage for Claims: In the event of a claim, E&O insurance helps cover the financial settlement or damages awarded to the claimant, protecting the dealership from significant financial loss.
Common Claims Covered by E&O Insurance
Misrepresentation
Claims arising from the incorrect representation of a vehicle’s condition or history, such as failing to disclose previous accidents or mechanical issues.
Documentation Errors
Mistakes in the preparation or handling of sales contracts, loan documents, or title transfers can lead to claims covered by E&O insurance.
Regulatory Non-Compliance
Failure to comply with federal or state regulations related to vehicle sales and financing may result in claims that are covered by E&O insurance.
Customer Disputes
Disputes with customers over service issues, such as inaccurate information about warranties or financing terms, can lead to claims covered by E&O insurance.
Dealership Errors & Omissions Expertise
Our attorneys have over 30 years of experience litigating Errors & Omissions for Doctors, Lawyers, Insurance Agents, Insurance Producers and Auto and Truck Dealerships.. We have litigated thousands of E&O matters. If a dealership either has made a mistake or alleged to have made a mistake, you need a legal team with extensive experience in handling such matters.
At FS CORPS, based in Illinois, our experienced attorneys specialize in dealership errors & omissions matters. We understand the challenges and potential consequences of these allegations, and we are committed to safeguarding your business interests and resolving these issues as swiftly and effectively as possible.
Recent Dealership Errors & Omissions Cases
November 2024
In the case of Gen. Sec. Indem. Co. of Ariz. A/S/O Terryville Chevrolet, LLC v. Felix F. Callari, Inc, 2024, a BMW dealership was sued for issuing replacement keys without proof of ownership.