5 Things you must know about Defective Workmanship Liability Insurance

1.  Who needs Defective Workmanship Liability Insurance?

Any business that repairs, maintains or works on assets which do not belong to them.

Note, for contractors (builders, plumbers, electricians, installers etc), your defective workmanship liability risk will automaticaly be covered by a Contractors All Risks Policy. For more information, go to www.contractinsurance.co.za.


2.  Why should you take out Defective Workmanship Liability Insurance?

Unfortunately everyone eventually makes a mistake. If your mistake when working on your clients property causes injury to your client or damage to their property, they will hold you responsible. Defective Workmanship Liability insurance costs a fraction of the price of paying large awards if your company is found negligent. Even if your company has not been negligent, the legal costs incurred in defending your company could cripple a business if not insured against. Taking defective workmanship liabilty insurance is a prudent way to ensure that your business will survive even if you do make a mistake.


3.  How much does Defective Workmanship Liability Insurance cost?

We have a large book of clients with many different insurance companies, thus we will be able to find the most beneficial policy with the cheapest premiums for your business.


4.  Typical claims incurred on Defective Workmanship Liability Insurance Policies

  •  An employee not putting all parts back after servicing a vehicle causing the vehicle to crash when driven away.
  • A plumber fitting an incorrect valve causing water to burst out of the valve & damage the nearby furniture.
  •  An appliance repairman incorrectly repairing a washing machine, causing the machine to damage the clients clothes.

5.  What other insurance should be considered along with public liability insurance?

If your business provides advice, designs or consultation services or if your work involves lots of calculations or stringent procedures, Professional Indemnity insurance should be considered. For businesses which go to their clients premises to work on items, Contractors All Risks insurance in place of Defective Workmanship cover is highly recommended.