The facts
DIU Landscaping was hired to provide landscape design and construction services for the refurbishment of a park adjacent to a senior center owned by the local township. The scope of the project included design and installation of pedestrian walkways throughout the park to enhance access.
Shortly after completion, the township advised DIU Landscaping that the walkways were experiencing noticeable cracking. This presented a particular safety hazard given the park's extensive usage by patrons of the nearby senior center, many of whom used walkers or wheelchairs.
The result
Further investigation revealed potential problems with both the design and installation services provided by DIU Landscaping. Due to the significant cracking, all of the walkways would have to be replaced.
The township notified DIU Landscaping of its intent to make a claim against them, alleging the contractor failed to properly design and install the concrete walkways.
DIU Landscaping's general liability policy did not provide coverage, since it excluded both the firm's design and installation services. However, Victor's General & Artisan Contractors E&O policy, written through CNA Insurance, responded and settled the claim, enabling the contractor to resolve the problem with no additional expense.
Risk factors
Risk factor #1
When providing design and installation services, it is essential to be attentive to a project's design and construction requirements. The possibility of a major loss or a catastrophic event is often tied not only to installation problems, but also to the failure of the contractor to meet the standard of care for the design of the installation.
Risk factor #2
It is important to remember that every project has unique considerations. When projects are utilized by populations with specialized needs, contractors may have increased exposure when problems arise.
The claims scenario is strictly documented for illustrative purposes only and provides an example of what a policy could cover. It is intended to provide a general overview of the program described. Please remember only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Program availability and coverage are subject to individual underwriting criteria.