Is Faulty Workmanship Covered Under My Public Liability Insurance

Is Faulty workmanship covered?

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."

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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.

Faulty Workmanship Insurance

 

What’s Not Covered By Your Public Liability Insurance Policy

What's Not Covered By Public Liability Insurance Policy

Not everything is included in a public liability insurance policy, so what's not covered? The following things are 'generally' excluded by most insurers:

  • Anything relating to asbestos
  • Things involving aircraft
  • Worker’s compensation
  • Product recalls
  • Punitive or liquidated damages — this is where your actions are deemed by a judge to have been so poor that you are ordered to pay extra damages
  • Faulty workmanship

You should also bear in mind that public liability policies also have some limitations in terms of how much they will pay out — there is typically a limit to how much can be paid out per claim, as well as a limit on the total amount that can be paid out under a policy as a whole.

What is public liability insurance?

What are common limitations in public liability policies

  • Your policy may restrict the height and location you work
  • It may exclude some business activities, like high-pressure cleaning
  • Provision of Advice
  • Heat work (welding and thermal cutting)
  • Underground Services
  • Hazardous Workplace and Sites Exclusion
  • Faulty workmanship

Click Here to Arrange a Quote 

If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.

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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.

Sources

https://knowrisk.com.au Insure247

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