Will You Be Covered for Poor Subcontractor Work?


Sometimes construction companies have to turn to subcontractors in order to complete a project. Unfortunately, not every subcontractor does great work, which means that the construction companies are the ones who will have to pay for their poor craftsmanship. With so many different types of construction insurance in New York, construction professionals shouldn’t simply assume that they are automatically protected against any poor work done by a subcontractor.

The Past Meets the Present

Even if builders, remodelers and contractors are currently covered against any shoddy workmanship that’s done by a subcontractor, that doesn’t mean that they’ll still be covered three years from now or even one year from now. The reason for that is because there’s a chance that their insurance company will add a special endorsement that creates a gap in coverage.

The special endorsement might change a vital exclusion inside of the general liability coverage form. Before, the exclusion might not have applied the insurance to any damage that resulted from the policyholder’s work, but it would apply to damage that resulted from work done by a subcontractor. With the new endorsement, the old rules no longer apply, meaning that any damage done by a subcontractor is essentially the same as damage done by the policyholder, meaning that the policyholder is now responsible for their legal defense and liabilities.

Construction experts who have construction insurance in New York should make sure that they are protected against any damage that results from any subcontractors that they might use in the future before they renew their policy.

This post was written by , posted on June 30, 2014 Monday at 4:00 pm