Avoid Construction Defects with These Tips and Reliable Insurance
The words “construction defect” is sure to strike fear and dread into the hearts of architects, engineers, and contractors. A claim for a construction defect can cost astronomical amounts to correct and defend, not to mention being time-consuming and labor-intensive. On top of this, one construction defect can be enough to sink a business’s reputation and future opportunities.
Types of Construction Defects:
Typically, courts categorize construction defects into one of four categories:
- Design deficiencies – Building designs that do not meet code or perform to standard.
- Material deficiencies – Use of inferior materials causes significant problems and do not perform even when properly installed
- Construction deficiencies – Problems the occur from poor quality workmanship
- Subsurface deficiencies – Cracked foundations or other structural damage caused when soil is not properly compacted and prepared for adequate drainage
Insurance Can Help
Your commercial general liability policy will help to defend you when there is a construction defect if any damages are potentially covered under the policy. Keep in mind that coverage for construction defects only applies if there is an “occurrence” under the policy. Your insurance will help to pay for property damage caused by the occurrence. However, it does not cover the costs to remedy the issue: the faulty workmanship or material that led to the damage. In most cases, the cost to correct the construction defect will be greater than the actual property damage expenses.
Engineers and architects will want to consider the additional protection of a professional liability policy. This coverage is designed to cover you when a design does not function as anticipated or promised. With this and your general liability policy, you can feel rest assured that you have safety nets in place if the worst does happen.
Safeguarding your construction is essential for its livelihood, funds, and success. Talk to the team at Nahai Insurance Services to receive custom insurance solutions to businesses like yours. We understand the various risks in your industry, and know just how to protect you with reliable insurance. Contact us today to get started.