Claims For Faulty Work: Does My Contractor's Insurance Cover It?

Contractors are often sued when their work turns out poorly, but a standard general liability policy doesn't cover any claims. It is also important to know what liability insurance is. This type of insurance covers contractors for a range of damages, including claims from first responders and clients. 

Contractors need to understand the basics of their coverages to avoid costly mistakes and unnecessary litigation. If you're sued for faulty work, the first thing you should do is call an experienced contractor insurance attorney. 

An attorney can help you determine if your claim falls under the "contractual" exception to your policy and explain your options for coverage.

What Is The Basis?
In many cases, you can determine the basis of a faulty work claim by looking at the policy you have. If your policy is from your employer, it will say if you're covered for an amount or not. Whenever a claim has a basis in a certain event, it's important to know what that event is and why it happened.
 
Coverage Requirement Files
To qualify for a general liability policy, the policyholder must have followed good business practices and met legal requirements. 

The policyholder must also be at fault for causing damage to another's property or person; not involved in an accident which someone else caused; and provide evidence of coverage, such as insurance documentation.
 
Clumsy Accidents Won't Be Covered
It is a common policy that all construction companies have. They want their workers to be safe while they work, but if something happens and a worker causes damage to the building, it's not covered by the policy.

Suppose you are involved in an accident at work. In that case, chances are your employer will have a workers' compensation policy, which is designed to provide immediate medical care and financial assistance for injuries sustained on the job. 

If you have not completed all of the steps in filing a claim with the workers' compensation board, you cannot file a claim for property damage resulting from your accident.
 
Note This
Contractors are not required to carry or purchase errors and omissions coverage, but many choose to. In all states, errors and omissions are not required by law but are common in some industries. If you plan to purchase this type of insurance, it should be purchased before completing the work.
 
At Robinsons Insurance Agency LLC, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at  (888) 254-7350 or Click Here to request a free quote.