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Peace of mind for tradesmen

Defective Workmanship or Sales Indemnity insurance is usually purchased by tradesmen as an extension to a Public Liability Insurance policy. We recommend our clients seriously consider the peace of mind this cover policies can bring to your business. It is important to note how Defective Workmanship insurance actually operates as it can be a little confusing if you do not work in the insurance industry. Put simply it will provide cover for damage or injury caused as a result of your faulty workmanship but not the damage to the part which was supplied or worked on.

Defective workmanship cover in practice

As an example; You’re a vehicle repair centre and an employee carries out a simple brake pad and disc replacement on a customer’s car. However he/she fails to correctly tighten the nuts to secure the parts. The customer drives off down the road and after using the brakes a few times they fail and cause the customer to crash into a tree. In this instance a defective workmanship policy will cover the resultant damage i.e. the repairs to the vehicle. However it will not cover the cost to put right the defective work i.e. it will not pay to correctly and securely re-fit the brakes. Without this type of insurance the likely chain of events would consist of your customer claiming for the damaged car from their vehicle insurer who, after investigating the cause of the claim, would instruct their solicitors to recover their costs from you. At this point in time you hope the customer’s vehicle is not a Bentley. With a Defective Workmanship policy in hand however you can simply pass the claim to your insurers who will deal with the investigations and if legitimate, settle the third parties claim. For more information or to request a quotation for a Defective Workmanship liability policy simply call 0333 003 0043 or click Call Me Now to speak to one of our expert team.

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