One of a contractor’s worst nightmares is a dissatisfied client, particularly a client who alleges the contractor’s work is faulty.

The majority of Commercial General Liability insurance policies on the market exclude coverage for defective workmanship.  Court cases abound involving contractors who attempted to get their CGL insurer to pay to fix their work.

The Restoration RRG’s Limited Service and Repair (LSR) policy is fairly unique in the industry. You may hear us refer to it as the ‘warranty’ policy, because it works similar to a warranty you might issue to a client; a warranty on your workmanship.

How the Restoration RRG Limited Service and Repair Liability policy works:

Description of Covered Service – The LSR policy assumes liability for defects in workmanship for “Remediation, Repair and Reconstruction” and “Home Improvement” following mitigation by non-insured entities or without mitigation services. If you become liable, the LSR policy will pay up to the policy limits to repair, replace or service the affected area or retain you to provide such work.

Service and Repair Limitation Period – The Service and Repair Limitation Period is the maximum period after the work has been completed when a claim may be filed. This is determined by the work guarantees or work warranties provided by the SERVPRO® Franchisee, but not to exceed five years after the services are completed. For example, if SERVPRO^® guarantees the work of SERVPRO^® Franchisees for a period of four years under a SERVPRO^® Agreement, then the Service and Repair Limitation Period shall be four years following completion of your work.

Damage to the Interior of Client’s Property –The policy covers all labor and materials to correct defects in materials and workmanship provided by you to the interior of your client’s property provided that the Restoration RRG is properly notified of a claim within the applicable Service and Repair Limitation Period.

Damage to the Exterior of Client’s Property – The policy covers all labor and materials to correct defects in materials and workmanship provided by you to the exterior of your client’s property provided that Restoration RRG is properly notified of the claim within ninety days after the date of the completion of your work under the specific contract.

Legal Fees and Expenses – The policy includes up to $25,000 in legal fees and expenses necessary to investigate and process a claim. 

LSR Coverage	Limits
Limits	$ 250,000 each claim $ 250,000 aggregate
Policy Deductible	$ 2,500 each claim

General Conditions

• Scope of Work – Coverage is provided for reconstruction work directly connected to fire, water, mold and disaster restoration work performed by you and/or on your behalf and construction work performed outside the scope of your work as a SERVPRO^® Franchisee.
• Bodily Injury – The policy does not provide coverage for, bodily injury, personal injury, pain and suffering or any other cause related to bodily injury, loss of use, extra expense or loss of income suffered by you and/or your client.
• Other Business Entities – No coverage is offered for any other business entity unless an application is submitted and approved.
• Covered Sub-Contractors - for any sub-contractor used a valid certification of insurance confirming current and in-force CGL coverage with no less than $250,000 per occurrence limits, naming you as certificate holder and additional insured along with a Hold Harmless Agreement between you and the subcontractor is to be kept on file.
• Other Business Entities – No coverage is offered for any other business entity unless an application is submitted and approved.
• Named Insured – Includes owners, officers, directors, trustees, employees