General Contractor and Construction Insurance: Faulty Workmanship - E&O v.s. GL

Here’s something we see surprise our insureds in the general contractor and construction industries all the time:

If something goes wrong with your work, your General Liability policy may not pay to fix it.

General Liability is generally designed to cover bodily injury or property damage resulting from your operations — not to act as a warranty for your work.

For example, if a roof is installed incorrectly and needs to be torn out and redone, the cost to correct that work may not be covered. But if that faulty installation causes water damage to other parts of the building, there may be coverage for the resulting damage.

So, what can you do?

Depending on your operations, there may be additional coverage options available, including Contractors E&O / Professional Liability and certain rectification or mitigation coverages, that can help address exposures your standard General Liability policy may not.

We’ve seen this become an expensive lesson for businesses, which is why we believe it’s important to talk about these gaps before a claim happens.

At CIB National Insurance & Consulting, we can review your operations, identify potential gaps, and explore coverage options that make sense for your business.

*Coverage varies by policy and carrier. This information is for general educational purposes only and is not a determination or guarantee of coverage. All claims are subject to the applicable policy terms, conditions, exclusions, endorsements, limits, and individual claim circumstances