The facts
SoCool Mechanical was hired to design and install a commercial air conditioning system for a local public library housed in a former warehouse building. SoCool Mechanical took on the installation of the job, and sub-consulted with an engineer on the design.
After completion of the project, the library reported the air conditioning system failed on especially hot days.
The result
An investigation discovered that the duct system was installed three feet higher than the design had instructed. This allowed cool air to escape into the cavernous library ceiling forcing the system to over work as it tried to cool the ground floor.
It was determined that this was a case of faulty workmanship on the side of the mechanical contractor. SoCool Mechanical installed the duct system incorrectly, resulting in impaired cooling for the space. The municipality sued SoCool Mechanical, alleging the contractor failed to properly install the air conditioning system.
SoCool Mechanical's general liability policy did not provide coverage due to a faulty workmanship exclusion, however Victor's General & Artisan Contractors E&O policy, written through CNA Insurance, responded to the suit and settled the claim.
Risk factor
Risk factor #1
When installing new mechanical equipment, it is essential that the contractor ensures all design requirements are followed. Careful review of design and installation protocols may prevent a costly error.
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.