Commercial general liability (CGL) insurance policies provide
insurance coverage for bodily injury and property damage claims.
However, CGL policies do not provide coverage for replacement or
repair of defective work. You need to understand the nature of CGL
policies and the details of contractual liability exclusions.
If a claim or suit against your company seeks only to recover
the cost of reroofing or repairing an allegedly defectively
installed roof system or the economic loss sustained by the
building owner because of defective work (meaning the building's
value declined because the work did not meet contract
requirements), standard CGL insurance policies will not provide
coverage (though there are some special endorsements available
through the NRCA/CNA insurance program that provide coverage
applicable to roofing work in certain circumstances.)
A CGL insurance policy is not a performance bond. It does not
guarantee contractual performance. Per the terms of CGL policies,
there is only coverage for bodily injury and property damage claims
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