Case Study
Carrier Non-Compliant with Replacement Costs
The Request
Company Profile
Industry: Construction
Revenue: $400M
Locations: U.S. Corporate HQ
During the construction of a building, the subcontractor scratched newly installed windows while cleaning. The carrier was unwilling to cover the replacement cost, as it felt the damage was due to a defective product.
The Solution
Brown & Brown reviewed the customer’s policies and identified existing coverage that applied to this claim. The Brown & Brown team triggered coverage under the general contractor’s commercial general liability (GL) policy exclusion l. Damage to Your Work for exception by subcontractors. Because GL doesn’t fix an insured’s work or product, the exception was critical and allowed the contractor’s policy to include coverage as an exception.
The Results
After the Brown & Brown team triggered the policy, the carrier agreed to pay for the replacement of all damaged windows, worth $100,000. The customer could proceed with repairs without covering the cost incurred by the subcontractor.
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