By Liberty Union Insurance Group, Inc. · Updated
The situation
A homebuilder hires a subcontractor to construct a garage roof. After the homeowner moves in, faulty construction causes the roof to collapse onto a vehicle.
This is an educational illustration, not a reported Liberty Union claim. No settlement or claim payment is stated.
The coverage question
Damage to the vehicle and damage to the roof can raise different questions under General Liability. TDI explains that the policy may respond differently when damaged work was performed by a subcontractor. Endorsements may change that result.
Review the actual policy before relying on a subcontractor exception. Additional insured coverage under the subcontractor’s policy is a separate question.
Before the next job
Confirm the work is acceptable to the insurer, obtain the applicable endorsements and discuss completed operations. Keep the signed subcontract and insurance records.
Read the subcontractor guide ↗Source: Texas Department of Insurance, Commercial General Liability, “Damage to Your Work” examples. Coverage depends on the policy and facts of the claim.