Most clients feel insurance policies are confusing in language. I feel that way about my taxes. However, this is the reason I employ professionals to file for me. I understand insurance most of the time, because it makes good business sense. Occasionally, there is an exception to that rule because the policy may include endorsements that either add or take away coverage. This is the case of the part under general liability policy called “products and completed operations” for contractors.
The policy completed operations part intended coverage for property damage caused by the sub-contractors work but not for the contractor’s work. However, in an effort to clarify intention, endorsements were added to define “your work”. It has been my experience within the industry, when there are definitions added to a policy, coverage for those items are limited. Because of the intent enormous claims began to arise, and insurance companies became compelled to define this coverage even further. Two endorsements were made available: Exclusion – Damage to Work Performed By Subcontractors on Your Behalf or Exclusion – Damage to Work By Subcontractors On Your Behalf – Designated Sites or Operations. The latter is scheduled and not used frequently. As you can imagine, these are confusing as to intent within the policy and many are still awaiting courthouse decisions. If you have questions regarding your General Liability policy and Products and Completed Operations portion of your policy, please contact your agent or one of ours.
Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect. Always check with your chosen professional as to statements made in this blog for your particular situation.