Is Faulty Workmanship Covered Under My Public Liability Insurance?
We asked Steve Sloan a broker with Insure 247, if we did repairs for a client that failed would we be covered?
Your public liability policy covers your business, for losses to a third party
"Your public liability policy covers your business, for losses to a third party.
You should check the product disclosure document as each insurer has a different approach to claims as a result of Faulty Workmanship."
An example of an insurer's approach to Faulty Workmanship
In the PDS from a leading Insurer it states:
We agree (subject to the terms, Claims conditions, General Policy conditions, Exclusions, definitions and Limits of liability incorporated herein) to pay to You or on Your behalf all amounts which You shall become legally liable to pay as
Compensation in respect of:
1. Personal Injury, and/or
2. Property Damage, and/or
3. Advertising Injury,
However under the "COVER SECTION EXCLUSIONS," it states
11. Faulty workmanship
for the cost of performing, completing, correcting or improving any work undertaken by You. (this means work that you do to repair or replace would not be covered)
According to Steve Sloan "Subject to the wording, it's likely that your policy will cover third party losses, but it may have a higher excess."
If you are still unsure speak to a broker on 1300 046 787
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Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs. Please read the Product Disclosure Statement and contact us if you require any clarification.