When Good Work Goes Wrong: Understanding Contractors Faulty Workmanship Coverage

By Jenny Holly Hansen | Langley News | October 19, 2025

Even the most skilled tradespeople know that perfection isn’t always guaranteed. A project can meet every inspection point and still end up with unexpected issues down the road — a leaking pipe behind a finished wall, a cracked foundation from improper compaction, or materials that didn’t quite meet the required specifications.

When that happens, who pays for the damage?

That’s where Contractors Faulty Workmanship coverage steps in.

What This Coverage Does

Faulty workmanship coverage protects you when your completed or ongoing work unintentionally causes damage that needs to be repaired or redone. In other words, it covers the additional costs to fix the damage that arises from your own work - not just someone else’s.

This type of coverage can pay for things like:

• Repairing resulting damage — for example, if improper installation of a window causes water to leak into finished drywall, the policy can cover the drywall repair and repainting.
• Bringing work up to specification — if materials or techniques used don’t meet required standards and damage results, the cost to correct that issue may be covered.
• Subcontractor-related issues — depending on your policy, it may also extend to work completed by subcontractors under your direction.

Why It Matters

Without this coverage, many contractors are surprised to learn that a standard liability policy may not cover damage caused by their own work. That can leave a costly gap between what you expected to be insured and what’s actually covered.

Faulty workmanship coverage helps protect your reputation, your cash flow, and your client relationships. Instead of scrambling to cover expensive repairs, you can get the job fixed quickly and professionally — and keep your focus on moving forward.

Real-World Example

Imagine a flooring contractor installs tile in a commercial space. A few months later, the tiles start cracking because the subfloor wasn’t prepared to specification. The business owner demands a full replacement.

Without faulty workmanship coverage, that contractor would be paying out-of-pocket — potentially tens of thousands of dollars — to replace materials and labor. With the right coverage, those costs could be absorbed by the insurer, saving the contractor from financial strain.

Protecting the Work You Stand Behind

You take pride in your craft, but even the best workmanship can have flaws. Contractors Faulty Workmanship coverage ensures that one mistake doesn’t undo years of hard work and trust built with your clients.

If you’re unsure whether your current policy includes this protection, it’s worth reviewing your coverage. A quick conversation today could prevent a costly surprise tomorrow.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance. With 19 years experience, she will well versed in the technical aspects of business coverages.

She can be reached at 604-3177 or jhansen@waypoint.ca   

Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  

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