The Seedsmen’s Errors & Omissions (E&O) product covers seed producers—defined as members of a recognized seed trade association—for financial loss or liability if the seed sold or treated is not the correct variety or quality or is not suitable for the purpose specified due to an error, negligent act or omission by the seed producer or its employees.
There are 6 main categories of claims:
- Mechanical error – mislabeling, mixture of the wrong variety of seed, inadequate laboratory testing for germination
- Overzealous distribution – over representing the seed product verbally or in a seed catalog, promising things that are out of the producer’s control (disclaimers of warranty and limitation of liability clauses should be used)
- Disease control problems – seeds can be susceptible to disease; this can be controlled by disease control treatments and by not planting in areas known to be infested
- Germination deficiencies – the seedsman needs to perform careful grow-out testing; state and federal seed testing labs should oversee these tests
- Misapplication – claims resulting from the seed failing in a given area
- Miscellaneous problems – improper or inadequate pollination, failure to rid the field of undesired varieties, and carelessness in harvesting
This product is also available for nurserymen (i.e., fruit/nut trees and shrubs), seedling growers, crop consultants, vineyard consultants/managers and seed testing facilities.
Seedsmen’s E&O is not product liability coverage nor does it cover Bodily Injury or Property Damage. RPS has designed this product to complement General/Products Liability (which only covers physical damage to property or bodily injury, not financial loss).