In spite of the time and effort contractors put into their projects, customers who allege that faulty work can create financial havoc and legal concerns that can destroy a construction company. Too often, contractors think their general liability policy will go into effect against a claim of faulty, but these situations aren’t covered liabilities. You would need to carry a more comprehensive form of contractor liability.
Common Faulty Work Claims
There is a wide range of claims or allegations that can come from a building or remodeling project, and whether or not the claims are founded, it will take considerable time and expense to clear your company’s name. Some of the common faulty claims include:
- Work performed with the wrong tools or incorrect machinery
- Failure to provide inadequate instructions
- Work quality that doesn’t meet industry standards
- Work was performed with inferior materials
These differ from bodily injury and property damage claims usually covered under a general liability policy, establishing the need for contractors liability coverage. The information presented by atminsurance.com also reveals that general liability policies are written to specify coverage approval for instances or occurrences that created the situation of harm or damage. Contractor errors or allegations against the quality of the work are related to the project as a whole and not a specific occurrence that establishes concern.