Builders Risk: Faulty Workmanship LEG/DE Provisions-Builders Risk: Faulty Workmanship LEG/DE Provisions

Video Transcription

Video Summary

The webinar discussed London Engineering Group's leg exclusions, including leg one, two, and three, which define coverage for defects and resulting damage in insurance policies. Leg one excludes all defects, leg two covers damage resulting from defects with exceptions for preventive costs, and leg three covers damage but excludes costs for material improvements. Differences compared to U.S. defect exclusions were highlighted, focusing on perils causing damage separately. Challenges in distinguishing defects from damage were explained, particularly when defects manifest. The video transcript addressed how defects in construction projects trigger insurance coverage under Leg 2 and Leg 3 clauses, impacting potential subrogation rights. It emphasized the complexity of determining when a defect becomes damage, affecting insurance claims. Considerations for adding Leg clauses to policies and rating Leg 3 coverage were discussed. Overall, the presentation provided insights into insurance coverage nuances related to defects and damage in construction projects.

Asset Caption

Date of Publication: February 15, 2017
Duration: 97 minutes

Coverage for faulty workmanship in a builders risk policy is typically excluded. The London Engineering Group developed a tiered approach to excluding or providing coverage for losses arising from faulty workmanship: LEG1, 2, and 3. This webinar will help you understand the dynamics of these endorsements.

Meta Tag

Module Builders Risk, Installation & Rigging

Keywords

London Engineering Group

leg exclusions

insurance policies

defects

damage

U.S. defect exclusions

perils

distinguishing defects

construction projects

insurance coverage

subrogation rights

insurance claims

Leg clauses