No Insurance Coverage For Following The Plans?

I believe most contractors follow the plans they are given, unless, they discover a flaw or mistake in the plans. I believe most contractors and clients would characterize the job as a success if the plans were followed correctly. Interestingly enough, major insurance carriers are considering punishing both the contractor and consumer for good work.

I just attended an insurance industry conference, and major insurance coverage attorneys for the major carriers lectured about "intentional conduct." Intentional conduct is generally not covered. Thus, if you commit fraud or intentionally do something wrong, there is no insurance coverage for this act.

However, the insurance industry is seemingly taking this concept to a perverse level. Carriers are now discussing the following: if a contractor follows the plans but, there are still problems with the construction that render the project damaged (leaks, cracks, etc.), there may be no coverage. Why? The contractor followed the plans and intended to build the house as constructed thus, his intentional conduct should not be covered, even when unintended results arise, such as leaks, cracks, etc. In essence, contractors and consumers will be punished for following the plans, which before now, was considered the sign of a job well done.

This is an area of the law to keep an eye on!

I practice construction defect, real estate, and serious injury litigation. If you need assistance or have questions, please do not hesitate to contact me via www.voneschlaw.com