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Rip And Tear Coverage

Rip and Tear Coverage

Definition

Covers the cost of tearing out a contractor's bad work due to defects that make its inclusion in the project unsafe. 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 defects that are purely cosmetic. A similar coverage, contractors rework coverage, covers both the cost of tearing out bad work and the cost of replacing it. The primary markets for rip and tear and contractors rework coverage are concrete and masonry contractors.

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