Insurance Law Lesson 70: Biz Risks; “Your Work”

The next stop on the GCL business risks tour is the exclusion for property damage to “your work.” Like the “your product” exclusion, it is very important to note the breadth of the definition of “you work,” which includes work done by the insured or on the insured’s behalf and also includes warranties, instructions, and anything furnished in connection with the work.

But, there are some additional pieces to consider.

The ISO “your work” exclusion applies only to work that is included in the “products completed operations hazard” (see Lessons 59-60). So, if the plumber drops the homeowner’s porcelain sink that he is working on during the job, the damage to the sink won’t be excluded under the “your work” exclusion.

Additionally, the ISO exclusion has an exception (see Lesson 14) for damage arising out of work done by a subcontractor. But, remember (1) an exception does not create coverage and (2) make sure to check all endorsements to see if there is a parallel exclusion without the subcontractor exception.

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