Ensuring insurance

Investing in innovative insurance protection can alleviate your liability

Typically, the type of general liability coverage carried by roofing contractors excludes claims stemming from faulty workmanship, design errors, and the use of defective materials or products. A standard commercial general liability (CGL) policy published by Insurance Services Office Inc. (ISO), Jersey City, N.J., a leading source of information and standardization for property and casualty insurers, does not provide insurance protection to roofing contractors for "your (insured's) product" and/or "your (insured's) work."

However, there now is an innovative insurance solution available that can help alleviate your liability from such claims as design errors, defective materials and mold.

The exclusions

Typically, a standard CGL policy contains the following exclusions:

  • General Liability Exclusion (K) Damage to Your Product: A standard general liability policy is not intended to be a warranty or guarantee for your installed products. The intent of a standard ISO general liability policy is to protect you for covered causes of loss, including bodily injury and property damage caused to third parties. Covered losses typically include consequential loss and resultant damage that manifests from roofing products installed by a roofing contractor, but a typical general liability insurance policy does not provide insurance coverage for the actual roof system.
  • General Liability Exclusion (L) Damage to Your Work: A general liability policy is not intended to protect you from damage to your work. The intent of a standard ISO general policy is to provide coverage to third parties for consequential loss and resultant damage that manifests from your work. A standard general liability policy does not protect a contractor against actual or alleged faulty work. For example, costs for rip and tear as a result of a faulty roof system usually are excluded from general liability coverage.

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