contractors rework coverage
Covers the cost of tearing out a contractor's work when defects in the work
make its inclusion in the project unsafe, as well as the cost of replacing the
defective work. The normal method of providing this coverage is by endorsement
to the commercial general liability (CGL) policy. (There is no standard endorsement for this purpose, but insurers
active in construction markets may have company-specific endorsements that add
this coverage back.) For coverage to apply, the work must fail to meet contractual
specifications or other industry standards that apply to the type of construction
into which the materials were incorporated. There is no coverage with respect
to purely cosmetic defects. A similar coverage, rip and tear coverage,
covers the cost of tearing out bad work but not the cost of replacing it. The
primary markets for rework and rip and tear coverages are concrete and masonry
contractors.
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CRM VI.C