BTIS Artisan Contractor Insurance

[JCK818]

Well it was a plumber and the pipes they fixed burst and the whole apartment complex got water damage. Nothing got covered.

 

[AZDave]

Like Fex said, sounds like the standard gl exclusion of 'your work' was used. Not a BTIS problem.

Shouldn't be an E&O issue unless you told him or them it was covered. All carriers would deny this claim under the gl. The endorsement offered from BTIS for "faulty workmanship" would, most likely, have covered this loss...

 

[stex]

That's not a standard ISO exclusion. The "your work" exclusion would only exclude the insured's own work - the cost to re-do the pipes in this case, not the cost to repair the water damage to the apartment.

Best scenario - the apartment itself has adequate insurance and low deductible, and its insurer not to pursue the plumber individually further once they learned the btis excludes coverage.

 

[Gulfman]

Like Fex said, sounds like the standard gl exclusion of 'your work' was used. Not a BTIS problem.

Shouldn't be an E&O issue unless you told him or them it was covered. All carriers would deny this claim under the gl. The endorsement offered from BTIS for "faulty workmanship" would, most likely, have covered this loss...

This makes sense. Contractors dont get crappy work coverage. But damages from or due to "crappy work" (death, damages, etc) should be covered.

OP, Did you read all the exclusions that were signed?

 

[FEX Quotes]

The endorsement offered from BTIS for "faulty workmanship" would, most likely, have covered this loss...

Up to 10,000, but this is better than nothing.

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That's not a standard ISO exclusion. The "your work" exclusion would only exclude the insured's own work - the cost to re-do the pipes in this case, not the cost to repair the water damage to the apartment.

Best scenario - the apartment itself has adequate insurance and low deductible, and its insurer not to pursue the plumber individually further once they learned the btis excludes coverage.

The one thing we don't know is the circumstances of the claim. This might very well be a completed operations claim. If so, was there in fact a water damage exclusion on products/completed ops?

 

[stex]

For the last two months I have started to rewrite all my BTIS renewals to others carriers that offer better forms. I once pushed them as an easy, inexpensive placement for small artisan contractors. But then I attended a GL contractor class from IRMI. Eye opening for sure. Many of their forms are trouble. They use the 2006 ISO gl policy which is only 16 pages, right? Then they add their forms - dozens of them. Many ways for them to deny coverage. For reference, I have attached one.

What was their specific denial of coverage based on? Pick a form, any form...

Would other carriers have paid this loss?

Most of the exclusions are pretty standard except for those designated Work and designated ongoing operation. I hate those as they are manuscript - the underwriter can put whatever they want on it. Worse yet, unless you request a copy, they probably won't include it in the quote.

 

[Arnage150]

It's not just BTIS.

Most CGL forms have exclusionary language for "that particular part..." and "your work..."

This is perhaps the most widely used/abused get out of jail free card for insurers.

I just had one of these denied recently. The contractor did a kitchen renovation. He broke a pipe that was buried in the concrete foundation and water would bubble up and ended up warping the wood floor. I thought no problem, he caused PD. Nope, since the floor was the main expense and he installed the floor it was excluded as "your work." One angry client. **** like that makes me hate selling insurance.

 

[DivineFoodie]

I write BTIS for bonds all day long, but I do not write my contractors with their GL policies.

 

[stex]

I just had one of these denied recently. The contractor did a kitchen renovation. He broke a pipe that was buried in the concrete foundation and water would bubble up and ended up warping the wood floor. I thought no problem, he caused PD. Nope, since the floor was the main expense and he installed the floor it was excluded as "your work." One angry client. **** like that makes me hate selling insurance.

Did the company at least cover the damage to the pipe and cost of concrete floor? Is yes, then I thin the policy covered what's it supposed to cover.

 

[JCK818]

I had been using BTIS for most of my artisan stuff. Who would you guys recommend in California for the artisan stuff