Short answer: Usually not for the work itself. A commercial general liability (CGL) policy generally won't pay to repair or redo your own defective work. It may cover property damage or bodily injury that the faulty work causes to others, such as water damage to a customer's floors from a bad plumbing joint. Exact results depend on your policy wording and your state's case law.
What CGL is built to cover
A CGL policy covers sums you're legally obligated to pay because of bodily injury or property damage caused by an "occurrence," usually defined as an accident. It isn't a warranty or performance bond. Fixing your own substandard work is generally treated as a business risk, not an insured loss.
The exclusions that matter
The standard ISO CGL form contains several "business risk" exclusions:
- Damage to "your work": excludes property damage to your completed work arising out of it. The standard form has an important exception when the damaged work, or the work that caused the damage, was performed by a subcontractor on your behalf. Some policies remove that exception by endorsement, so check yours.
- Damage to property you're working on: excludes the specific part of property that has to be restored because your work was done incorrectly.
- Impaired property: limits coverage when property can't be used because your work is defective but hasn't been physically damaged.
Example
A tile setter installs a shower pan incorrectly, and water leaks into the ceiling below.
- Tearing out and redoing the shower pan: generally not covered.
- Repairing the damaged ceiling and the downstairs owner's ruined furniture: potentially covered, subject to the policy's terms and the completed operations coverage in force.
Completed operations matters
Damage that shows up after you finish the job falls under the products-completed operations hazard, which has its own aggregate limit. Keeping continuous coverage after a job ends is what protects you when a claim arrives later. See completed operations coverage.
Other tools for workmanship risk
- Surety bonds guarantee performance to the project owner, but the surety can seek repayment from you. See surety bond vs. insurance.
- Professional liability may respond to design or specification errors that CGL excludes. See contractors professional liability.
- Careful subcontractor agreements and certificates, so a subcontractor's own policy responds first.
Bottom line
Expect CGL to cover the damage your mistake causes, not the cost of redoing your work. Read the "your work" exclusion and any endorsements on your policy.
Questions? Contact Alishahi Insurance or call (877) 711-4545. Vea contractor insurance.
Frequently asked questions
Does general liability pay to redo faulty work?
Generally no. CGL excludes damage to your own work and the cost to redo work done incorrectly.
Does general liability cover damage caused by faulty work?
It may cover resulting bodily injury or property damage to others, subject to policy terms.
What is the subcontractor exception?
In the standard 'your work' exclusion, damage involving work performed by a subcontractor on your behalf can be covered. Some endorsements remove it.
What coverage handles claims after a job is finished?
The products-completed operations hazard of a CGL policy, which has its own aggregate limit.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.