Why Construction Defect Coverage Matters More Than Ever
For general contractors, subcontractors, and project owners, few issues create more financial and legal stress than construction defect claims. The most common—and most costly—defect we see is water intrusion. Whether it stems from faulty flashing, poor installation, or improper sealing, water damage doesn’t just stop at a leak. It spreads quickly, often leading to mold, rot, and even structural compromise.
The challenge? These claims frequently surface years after a project is completed, long after crews have left the jobsite. If your insurance program isn’t built the right way, there’s a good chance your policy won’t respond—and you could be left footing the bill.
Not All Policies Are Created Equal
One of the biggest risks in construction is assuming your liability policy automatically covers defects. The reality is that coverage forms, exclusions, and limitations vary widely. Some policies provide meaningful protection, while others quietly carve out critical areas—leaving major gaps.
For general contractors, the exposure runs even deeper. If a defect arises from a subcontractor’s work, and your contracts don’t include the right risk transfer mechanisms, you may be the one carrying the financial burden for someone else’s mistake.
How Haughn Protects You
At Haughn Insurance, we know construction risks don’t stop once the ribbon is cut. That’s why we help contractors and owners build programs that specifically address construction defect exposures. Our team makes sure coverage for issues like water intrusion is included, while also guiding you in establishing strong contract language and transfer strategies that protect your bottom line.
We don’t just write policies—we design programs that safeguard your work, your reputation, and your future projects.
Time for a Program Review
If you’re unsure whether your current insurance program truly protects you from construction defect claims, now is the time for a review. Our professionals at Haughn Insurance are here to assess your coverage, identify potential gaps, and put solutions in place.
Because in construction, protecting your business today means building confidence for tomorrow.
