When a contractor's work causes damage, the standard GL covers the damage it caused — not the work itself. That distinction is the 'your work' exclusion, and it's where contractor claims often split in unexpected ways.
When a contractor's work causes damage, the standard general liability policy doesn't cover all of it. There's an exclusion built into the standard GL form — called the 'your work' exclusion — that draws a specific line between what the policy covers and what it doesn't.
How the Exclusion Works
The GL covers bodily injury and property damage caused by the contractor's work. What it does not cover is damage to the work itself.
If a plumber installs a fitting improperly and the resulting leak damages a client's flooring, drywall, and contents, the GL covers that property damage. What it won't pay for is replacing or repairing the faulty fitting — that's 'your work,' and it's excluded.
The same logic applies across trades: a roofer whose improper installation causes interior water damage gets GL coverage for the interior but not the roof. A general contractor whose subcontractor's defective framing leads to structural problems faces the same split on any claim that follows.
Why This Matters
Most contractors — and their clients — assume GL coverage means coverage for damage arising from the job. The actual picture is narrower: coverage for damage caused by the job, but not for the job itself.
This distinction matters most when the cost to repair or redo the contractor's own work is the largest component of a claim. It also matters when defects emerge months or years after a project is complete — completed operations claims can surface well after the job is finished, and the 'your work' exclusion still applies.
What to Look For at Renewal
Some policies include a 'your work' buyback endorsement that restores limited coverage for defective workmanship claims. Not all do, and the sub-limit varies significantly when it is present.
For contractors with substantial completed work on their books — especially those doing higher-value projects — it's worth reviewing whether the policy addresses this gap and what the realistic coverage looks like if a completed operations claim comes in after the fact.