What are faulty workmanship exclusions

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Faulty workmanship exclusions are perhaps the most controversial — and most relied upon — builder’s risk policy exclusion because construction projects have a high probability of error. This aspect of builder’s risk exclusions is notable because, according to data from the Associated General Contractors of America, 85 percent of contractors report having open positions for qualified craft workers. Because finding qualified craft workers is so challenging, expect this risk trend to continue.


Generally, builder’s risk policies exclude costs incurred by repairing a subcontractor’s faulty work. However, policies can have an ensuing loss provision that may cover damage resulting from fa lebanon mobile phone numbers database ulty work. Legal experts say that under an ensuing loss provision, damage that occurs before and due to faulty workmanship may be covered. However, you need collateral or subsequent damage to trigger coverage with some builder’s risk insurance policies. Others require that a separate peril cause the damage.


Faulty workmanship exclusions are known to be controversial, so ensure you’re aware of your policy’s specifics. FYI Standard builder's risk insurance policies exclude payment for workers' injuries. If someone is hurt during construction, this would typically fall under workers' compensation insurance. What should you look for in a builder’s risk insurance policy? Whether you’re working with a new insurer or dealing with a company that already handles your business owner’s insurance policy, general liability insurance or professional liability insurance, you’ll need to work with your representative to ensure no coverage gaps exist.