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.

Tradies Love Trade Risk

In 2017 Trade Risk was awarded a Gold Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

  • "Would recommend"
    | Tradesman Insurance |
  • "GOOD --reminded me it was coming up for renewal .. BAD ---Expensive"
    Brian Arthur Chedgey | Tradesman Insurance | melbourne
  • "Trade Risk insurance is Very good with Customer service and make it easy to deal with them I would anticipate to staying longer with Trade Risk Insurance"
    Saiyaaz Khan | Tradesman Insurance |
  • "good"
    The Trustee for K W Haase Family Trust | Tradesman Insurance |
  • "Great service,prompt and helpful."
    | Tradesman Insurance |
  • "Not much to report other than best priced insurance"
    | Tradesman Insurance |
  • "Trade Risk are always so easy to deal with and give you the best value, your one stop insurance shop!"
    Simon Betsarkis | Tradesman Insurance |
  • "So far so good I have not had to make a claim and therefore don't know what to expect, but the contact service is good."
    David Vickers | Tradesman Insurance | Altona Meadows, Vic
  • "The renewal was Easy and yes I would recommend"
    Pilkington Mechanical Services Pty Ltd | Tradesman Insurance |
  • "Good"
    | Tradesman Insurance |
  • "No fuss seamless insurance process, very helpful in my busy job"
    John Gilbert | Tradesman Insurance |
  • "Easy to renew in an instant"
    Cliff Dawson | Tradesman Insurance |
  • "Great service, great to deal with!"
    Kristian Petersen T/As Bayside Building And Extensions | Tradesman Insurance |
  • "would recommend and will use again"
    | Tradesman Insurance |
  • "All good, no problems"
    | Tradesman Insurance |
  • "Impressed with ease of getting an online quote and also the price. Had trouble completing it online but I think that may be my old computer. Pleasant experience talking with staff to complete insurance cover and all email information I have received appears complete."
    D & C GILBERT ELECTRICS | Tradesman Insurance |
  • "Good customer service"
    Jason Campbell Brown | Tradesman Insurance |
  • "Getting u the best prices and always there to help"
    Conworx Pty Ltd | Tradesman Insurance |