Is Defective Work Covered by General Liability Insurance?
If windows were installed incorrectly, does general liability insurance cover this defective installation? Unfortunately, general liability insurance does not cover the defective work nor replacing the windows.
What if there is water damage and intrusion caused by the defective work? Then yes, general liability insurance will cover the water damage, but again not the defective work.
Only Damage From Defective Work
As you can tell, general liability insurance is important but not the absolute answer when it comes to defective work. General liability insurance does not cover the risk of your defective work, only the risk of damage resulting from defective work. This is a significant distinction and one that is often overlooked. Maximize insurance coverage by working with a Jacksonville construction attorney to pinpoint issues not covered by insurance. Consult with a lawyer that understands insurance and how to maximize insurance. The attorney will also advise you when the issue is not an insurance-covered issue.
What Are My Options?
Since general liability consists of language excluding faulty work, if you are hoping to safeguard your contractor business, consider contractor’s professional liability. This option protects contractors against construction defects arising from design errors or omissions. Like a standard professional liability policy, it covers lawsuits due to errors, oversights, or professional negligence. Contractors professional liability coverage can be written on a project-specific basis, on a claims-made basis, or on an annual basis.
No one wants to plan for faulty work but if you have an incident, the right contractor insurance offers you safety and support.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.