The own-work exclusion is a clause found in some commercial general liability insurance policies. This provision specifies that the policy does not cover damages to the work or services that the insured has performed. Essentially, if a business causes damage while carrying out its own work, this exclusion prevents them from claiming insurance for those damages.
The own-work exclusion is primarily relevant in the context of commercial insurance and liability law. It is often encountered by businesses in various sectors, including construction, manufacturing, and services. Understanding this exclusion is crucial for business owners as it influences how they manage risks associated with their work. Users may find it beneficial to explore legal templates on US Legal Forms to draft or review their insurance policies effectively.
Here are a couple of examples of abatement:
Example 1: A construction company accidentally damages a client's property while installing new roofing. Under the own-work exclusion, the company's insurance would not cover the repair costs because the damage occurred during their own work.
Example 2: A contractor performs renovations on a building and inadvertently damages existing fixtures. The costs to repair those fixtures would not be covered by their liability insurance due to the own-work exclusion. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Generally follows standard exclusions in liability policies. |
| Texas | May have specific statutory provisions affecting exclusions. |
| New York | Commonly includes own-work exclusions in commercial policies. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Completed Operations Exclusion | Excludes coverage for damages occurring after work is completed. | Own-work exclusion applies during the performance of work, while completed operations exclusion applies after work is done. |
| Professional Liability Insurance | Covers negligence or errors in professional services. | Own-work exclusion is specific to general liability, while professional liability addresses service-related errors. |
If you are a business owner and the own-work exclusion applies to your insurance policy, consider the following steps:
Browse our library of 85,000+ state-specific legal templates.
| Attribute | Details |
|---|---|
| Typical Fees | Varies by policy and provider. |
| Jurisdiction | Applicable in all states, with variations. |
| Possible Penalties | Loss of coverage for damages to own work. |
The own-work exclusion is a clause in liability insurance that denies coverage for damages caused by the insured's own work.