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Construction Archives | Devact

Does a builder have insurance if a building has defects? Beware builders and owners!

Posted in Construction on Tue February 4, 2014



Most builders or contractors have a commercial general liability (“CGL”) insurance policy for a particular project. It is often required by the construction lender. However, whether this policy actually affords any meaningful insurance to either the contractor or the owner is another question.

Much to the surprise of builders and owners, construction defects are generally NOT covered by either a CGL policy or the owner’s homeowners policy (or business policy). The example we often give clients is that if your roof leaked as a result of a construction defect,

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