Look Closely. Your General Liability Policy probably does not cover Faulty Workmanship. Most construction companies, contractors and tradesmen aren’t even aware that such coverage is available. When there is a mistake on the job arising out of faulty workmanship, materials or products you incur a major cost to fix such problems – not to mention the damage to your reputation and lost business as a result. Your best move is to fix the problem. With Faulty Workmanship coverage you hedge your losses for such mistakes. You will have the ability to cover the cost of the mistake and your client gets the job done right. You have saved your reputation and the client will call you again.
Here are some examples based on work class
- 98304 Paint Exterior (3 Stories & Under) – After completing the exterior painting of a house, the paint begins to peel and deteriorate. Thus, the entire house must be re-painted.
- 91340 Carpentry – Residential Failure to obtain a permit or meet building codes and building department requires removal of the work performed
- 92478 Electrical – Within Buildings Installation of wiring, switches, breaker, or fixtures that are either insufficient or in contravention with plans and specifications requires replacement
- 94569 Floor Covering – No Tile Improper installation of vapor barrier may cause warping and require replacement of exotic wood flooring
- 95647 Heat/AC – no LPG While replacing an HVAC unit, faulty installation of the new unit causes the heat exchanger or compressor to fail, requiring costly repairs
- 99746 Tile/Stone Installation – Crooked, hollow sounding, or uneven tile, or tile used in contravention of the plans and specifications requires demolition and replacement of the tile
Almost all policies exclude and do not cover such occurrences. The Faulty Workmanship endorsement is unique and hard to find. Call us for a free consultation on your risk management. Our Staff attorney will talk to about your exposure.
FirstCapital Insurance Services