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Contractors confront some perplexing insurance coverage problems in their daily business activities. Let’s explore a few common scenarios briefly and discuss if and when coverage applies to structures.

Product and Work ExclusionsWhen a contractor negotiates with another party to perform some work, the contractor may extend an express warranty that its construction materials and services will be provided in a reasonably workmanlike fashion. Even if the contractor does not express such a warranty, the mere act of holding himself or herself out as being able to do the work creates an implied warranty that the materials will be fit for their particular purpose(s), and that work will be performed in a competent, skillful manner.

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