General Liability Question

[xrac]

Here is the situation. Our church needed a new roof after hurricane winds. A claim was filed and insurance company adjuster agreed to repair. ADUSTER recommend a roofing contractor who was hired and did the work. Afterwards when rains began leaks started to occur. Work was found to be faulty. Roof will need to be removed and redone. Contractor has filed for bankruptcy. The question:

1. Is there the potential for any type of coverage under the contractor's general liability policy that was in force at the time?

2. What is the exposure of the insurance company aduster or independent adjuster (I don't know which) for making a recommendation?

 

[moeasadi]

If Church policy covers "faulty works"(Usually excluded), then they pay and subrogate it against the contractor's insurance.Lability part (water damage and any damage resaulted from faulty work) is most likely covered.I don't know if adjuster can be held liable.Nice case to learn from.

 

[Bertolinoins]

Within 10 years... The contractors CGL policy should pay.

 

[Air Jer]

If the roofing contractor had coverage in force when the work was done, the faulty work itself done by the contractor will not be covered but the resulting damage will be. This would be the water damage. As for the subsequent bankruptcy, it has no impact on the general liability coverage, if the contractor had coverage in place when the work was done. The sticky issue is that the best recourse the church has for the faulty work itself is the now defunct contractor who now unfortunately does not exist - sorry. As for legal recourse against the adjuster, possibly but it would have to be proven that the roofer was known to be inept and that the adjuster knew this.
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A re-reading of the original post brings up another thought. My first post was assuming that the adjuster was an independent adjuster but it seems that the adjuster might be an employee of the insurance company that has the property insurance on the church. If this is the case, refile the claim against them.

 

[djs]

Many insurance companies guarantee the work of their 'preferred' contractors. If the guy who did the work was on the list for the insurance company, not just a referral from the adjuster, then the insurance company will make good on it, perhaps.

I'd be hard pressed to go after someone for giving me a referral, unless you could show the referral was known to be faulty, with perhaps a financial arrangement on the backside. A referral isn't a guarantee of work, if it was, we'd all be in trouble for a referral we've done along the way.

Dan

 

[xrac]

Many insurance companies guarantee the work of their 'preferred' contractors. If the guy who did the work was on the list for the insurance company, not just a referral from the adjuster, then the insurance company will make good on it, perhaps.

I'd be hard pressed to go after someone for giving me a referral, unless you could show the referral was known to be faulty, with perhaps a financial arrangement on the backside. A referral isn't a guarantee of work, if it was, we'd all be in trouble for a referral we've done along the way.

Dan

We suspect the adjuster had a financial arrangement. We would have never selected this company if he hadn't pushed them.

 

[Air Jer]

Is the adjuster an independent adjuster or an employee of the insurance company?

 

[txagt39]

Anytime a professional recommends another vendor you better recommend more than one or you can be held partially responsible/liable. You can get sued for anything, you still lose even if you win because you have the legal expense which is usually outside policy limits on your gl and E&O. Better just never recommend just 1 entity, you can't control their performance or product unless you are ready to stand behind that recommendation with your wallet.

 

[xrac]

Is the adjuster an independent adjuster or an employee of the insurance company?

We are still in process of trying to get all the details.