The new faulty workmanship liability coverage is designed to complement the ISO commercial general liability (CGL) policy. It addresses elements of property damage that are excluded from the ISO CGL policy, a release explained. Coverage is triggered by a third-party faulty workmanship claim against the policyholder, but the claim does not have to allege negligence.
“The insuring agreement covers the amount contractors are legally obligated to pay and even extends to the use of defective materials or products and breach of contract or warranty issues,” said Berkley Construction Professional executive vice-president Raymond F.H. Bustamante, who added that Berkley can now cover property damage that would be normally excluded from ISO CGL policies.
A release said that the faulty workmanship liability coverage is a separate and independent insuring agreement added to the Berkley Construction Professional Perform policy. Terms of the coverage include limits/sublimits of up to $2 million.
