General liability insurance coverage is not always required for contractors, but it could help you with fees associated with lawsuits regardless of who is at fault. Out-of-pocket fees can drain your finances and interrupt your business. Policies are unique to the contractor holding them and learning about the different types of general coverage can help you understand whether you are covered or at risk.
Completed Products Coverage
Problems with construction or installation can cause headaches for contractors and owners alike. Construction defects are a source of contention and commonly lead to a clash of differing viewpoints. Defects can stem from bad craftsmanship, poor design, or substandard materials that cause damage or failure to a structure. Defects are not caused by normal wear and tear.
There are two common kinds of construction defect:
Design errors: caused by an omission or mistake in a design element. A roof with a design defect may cause leaks which can damage the interior of the structure.
Workmanship defects: failure to build to the design specifications. An example of this is misreading documents causing columns on the front of a building to intersect with a wall when they should have stood on their own to support an overhang.
Get Help with Defect Lawsuits
You can’t do everything at a job by yourself, and you can’t always control what happens. Cases trying to prove construction defects can be convoluted. These cases need experts to demonstrate the work was improperly performed to prove the owner’s claim. Proving the failure of work can also involve destructive testing on the property, such as removing drywall to expose framing.
Defect lawsuits can really add up in time lost and court fees. Damages and legal expenses for these problems are paid up to the policy’s limit, which always depends on what the individual policy covers.
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.