No Need to Self Insure Your Faulty Workmanship
Many contractors have learned the hard way that they can’t adequately protect themselves from a liability exposure by simply purchasing a general liability policy. Too many exclusions exist within the policy. For example, did you know a general liability policy wouldn’t protect if the contractor is alleged to have caused a pollutant condition, and/or if a contractor’s employee alleges that their employer has discriminated or wrongfully terminated them? Hence, contractors have long been filling in these gaps with separate policies such as a pollution liability policy and an employment practices liability policy.
What about if the trade contractor is accused of either faulty workmanship or using faulty/defective material? Did you know that these types of potential suits are also excluded within the standard general liability policy? Trade contractors should take the time to consider their risk in completing the $1million+ job that is discovered to be faulty – either because of the workmanship or the material. Does the contractor want to take the financial hit of completely redoing this $1 million+ job? Why should the contractor roll the dice with his financial stability?
Contractors should consider hiring an expert to audit their exposures in comparison to their insurance program. The decision to “self insure” is best made consciously – prior to a claim occurring and then ultimately being denied. The contractor should be aware that there is a way to fill in every gap in the general liability policy – including if they botch a job.
- General Liability Webinar Replay
- The General Liability Rubik's Cube for Residential Contractors
- FYI: Cyber Claims Excluded from General Liability Coverage
- Safety E-Book
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