Construction defects involving Texas structures often give rise to claims. Lawsuits and insurance filings to recover money to pay for harm from construction defects happen frequently. Because any contractor or business involved in a construction project can be held liable, you should understand these defects and what kind of insurance you need to protect yourself and your employees.
What are construction defects?
Construction defects involve errors in the design, workmanship and/or materials or systems, resulting in a failure of part of the building or structure. They result in injury to a person or property damage. Most construction defects arise from:
- Design flaws
- Defective work
- Normal usage
- Lack of maintenance
These also fall into two main categories: patent defects and latent defects. Patent defects are obvious ones anyone can identify, usually manifesting themselves soon after construction has finished. Latent defects don’t occur until months or years later and frequently require a professional to identify them.
Mitigating damage from construction defect claims
Securing the proper insurance can help mitigate any claims that arise. Companies can choose from several insurance types, including:
- General liability
- Products-completed operations
- Professional liability
- Builder’s risk
Who may be the target of a construction defect claim?
Almost anyone involved in construction can be the defendant in a construction defect insurance claim or lawsuit. Even if you have a business that delivers or manufactures materials and are not on the site itself, you could be held liable. Making sure that all workers are covered by a construction insurance policy is also essential.
Get a certificate of insurance (COI) from your insurance provider to show you have the necessary coverage. Doing so won’t prevent defects, but having one can make your outcome more favorable.