Q

A basement wall collapsed as a subcontractor, hired by my general contractor client, was back-filling. The cause of loss was the use of an improper method of back-filling (the subcontractor pushed the dirt against the wall with a bulldozer rather than dropping the dirt in with a backhoe).

The insurer is denying coverage stating that the improper construction methods coverage would apply only for work done by the insured, and does not apply to work done by a sub-contractor working for the insured. Please advise.

Michigan Subscriber

A

The builders risk coverage form provided for review covers collapse by specified perils, one of which is “use of defective materials or methods in construction, remodeling, or renovation, if the collapse occurs during the course of the construction, remodeling or renovation.”

If the general contractor is obligated for the damage to the building site owner, and if the cause of loss was indeed the use of improper construction methods, it does not matter if the contractor or a sub-contractor working for the insured caused the damage. The policy should respond to this loss, not on behalf of the subcontractor, but for any legal obligation of the insured.