Who Needs Faulty Workmanship Coverage?

Trades More Exposed to Faulty Workmanship Claims Warranting Faulty Workmanship Coverage

Faulty workmanship claims arise when a contractor’s work fails to meet industry standards, contractual obligations, or causes damage, leading to lawsuits or disputes. The Faulty Workmanship Coverage Endorsement is particularly valuable for trades with higher exposure to defective work claims. Here are the trades most exposed, based on industry risk profiles and examples from our prior discussions:

1. Roofers

• Risk: Roofers face frequent faulty workmanship claims due to leaks, improper installation, or material failures (e.g., shingles blowing off, water damage from poor sealing). Claims often involve property damage (e.g., water infiltration damaging interiors) or structural issues, with damages ranging from $10,000 to over $1M.
• Why Warranting Coverage: Roofers often work on steep slopes, use complex materials, and face weather-related risks, increasing defective work lawsuits. Faulty Workmanship endorsement covers defective roofing, WOS for subcontractors, and primary non-contributory status, reducing liability for costly repairs or lawsuits.

2. Framers and Structural Contractors

• Risk: Framers deal with structural integrity issues (e.g., uneven walls, improper load-bearing supports, or code violations), leading to claims for structural damage or safety hazards. Damages can exceed $500,000, especially if buildings fail inspections or collapse.
• Why Warranting Coverage: Faulty framing can cause widespread property damage or safety risks, triggering lawsuits from clients, homeowners, or insurers.

3. Drywall Installers and Finishers

• Risk: Drywall contractors face claims for uneven surfaces, cracking, improper taping, or moisture damage, especially in new construction or remodeling. Claims might range from $5,000 to $100,000 for repairs, but larger projects could hit $500,000+ if structural issues arise.
• Why Warranting Coverage: Drywall work often involves subcontractors and complex finishes, increasing defective work risks.

4. Plumbers and HVAC Technicians

• Risk: Plumbers and HVAC contractors face faulty workmanship claims for leaks, improper installations, or system failures (e.g., burst pipes, faulty ductwork). Damages can include water damage, mold, or HVAC breakdowns, with claims ranging from $10,000 to over $1M for major property damage.
• Why Warranting Coverage: These trades often involve complex systems, subcontractors, and high-stakes projects, increasing defective work lawsuits.

5. Tile Installers and Flooring Contractors

• Risk: Tile and flooring contractors face claims for uneven surfaces, cracking, improper grouting, or water damage (e.g., from improper sealing). Damages might range from $5,000 to $200,000, especially for large commercial or residential projects.
• Why Warranting Coverage: Tile and flooring work often involves subcontractors and high client expectations, raising defective work risks. Best Choice’s Faulty Workmanship coverage reduces liability, while VETA’s absence increases financial exposure for tile/flooring pros.

6. Exterior Painters and Siding Installers

• Risk: Exterior painters and siding contractors face claims for peeling paint, improper sealing, or weather-related failures (e.g., fading, cracking due to poor prep). Damages can range from $5,000 to $500,000, especially if siding fails or paint damages structures.
• Why Warranting Coverage: Exterior work faces harsher conditions and higher visibility, increasing defective work lawsuits.

7. General Contractors and Remodelers

• Risk: General contractors and remodelers oversee multiple trades, facing faulty workmanship claims for any defective work (e.g., plumbing leaks, structural issues, painting errors). Damages can exceed $1M for large projects, especially with subcontractors involved.
• Why Warranting Coverage: These trades manage complex projects and subcontractors, heightening defective work risks.

Why These Trades Warrant Faulty Workmanship Coverage

These trades are more exposed to faulty workmanship claims due to:

• Complex or High-Stakes Work: Roofers, framers, plumbers, and HVAC pros handle critical systems or structures, where errors lead to costly damages (e.g., leaks, collapses).
• Subcontractor Involvement: Many use subcontractors, increasing WOS and primary non-contributory risks.
• High Client Expectations: Tile, flooring, and exterior painting/siding face scrutiny for aesthetics and durability, raising defective work lawsuits.
• Large Project Scales: General contractors and remodelers manage big projects, amplifying liability for defective work across trades.

For High-Risk Trades like Roofers, framers, plumbers, HVAC pros, tile/flooring contractors, exterior painters/siders, and general contractors should opt for the Faulty Workmanship endorsement, WOS, and primary non-contributory coverage, reducing liability for defective work claims.

Burbank Insurance can ensure you have this endorsement for you company so you have peace of mind on your worksite. Call today to speak with an agent.