Consider Why Your Construction Firm or Clients Require Professional Liability Coverage

This article from the law firm of Wade Clark Mulcahy is important as it not only discusses an affirmation of coverage for faulty work under a CGL policy but inversely also illustrates why Contractors need to consider augmenting their insurance programs with a properly constituted Contractor’s Professional Liability policy:

 

•  It’s an appellate level decision from the U.S. Court of Appeals for the 10th Circuit interpreting that the NY Court of Appeals (highest court) would decide that faulty sub-contractor work can constitute an occurrence.

•  Questions:  But what if such faulty work:

 

- does not constitute an occurrence under a CGL policy, i.e. there is no property damage; or if there is property damage, coverage is negated by operation of one or more exclusions?

 

- was self-performed by the Named Insured and not a sub-contractor?

 

•  Answer:  Not covered.  Again, Contractors must be informed that they cannot solely rely on a CGL policy but must also consider a properly constituted Professional Liability policy.  

 

We here at Trinity know how to put such a policy together.  

 

Contact us for assistance.