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Faulty workmanship and defective work.

A common question we get from tradesmen is whether or not public liability insurance covers them for faulty workmanship.

Handyman

The answer is yes – but only the consequences of the faulty workmanship are covered – not the rectification of the faulty work.

Of course all tradesmen take pride in their work and don’t ever expect faulty workmanship to be an issue for them, but unfortunately mistakes can happen, and when they do it’s important to have the right protection in place.

General Advice Warning

Before we get stuck into this issue we first need to stress that claims for public liability, and especially those involving faulty workmanship, are all judged on their merits and reviewed on a case by case basis.

We are not in a position to tell you definitively what specific scenarios would be covered and which wouldn’t be, but we can give you a general overview so that you know where you stand.

Is Faulty Workmanship Covered?

Certain aspects of faulty workmanship will be covered under a tradesman’s public liability insurance

policy.

In most cases what will be covered is any property damage or personal injury caused by the faulty workmanship.

What won’t be covered is the cost of rectifying the faulty workmanship, regardless of whether the rectification work is undertaken by you or someone else.

Below is the actual wording from a major Australian insurer’s PDS (Product Disclosure Statement) detailing the defective work coverage:

“We will not pay if the legal liability is for the cost of performing, completing, correcting or improving any work done by you, however this exclusion does not to apply in respect of claims for legal liability as a consequence of such defective work.”

Essentially what this is saying is that they won’t pay to have the faulty / defective work rectified, but they will pay a claim if you are liable for property damage or personal injury as a consequence of the faulty work.

More Information

Faulty workmanship and defective work can be a tricky area, so if you have any questions it is best to speak with a qualified insurance adviser, such as those here at Trade Risk.

If you ever find yourself having to make a claim for faulty workmanship, and you have your public liability with Trade Risk, our team will work with you to push the insurer for the best outcome.

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