Streetsmart insurance Blog
General liability insurance protects contractors from lawsuits that arise because of problems with their work. Sometimes those problems are obvious and can easily be reported to their insurance company; on the other hand, those problems could remain hidden for years.
To prevent policyholders from filing claims for problems that were created years earlier, some insurance companies started including manifestation provisions in their contracts. If your general liability insurance policy has a manifestation provision, you can only qualify for coverage if you discover property damage during the same term that you completed construction. If you file a claim after the term has ended, you will be forced to pay for any repairs, legal fees, and damages out of pocket.
For example, imagine that Charles Tucker built a gazebo for the Harrison family. Tucker completed the gazebo in June 2013, and the Harrisons were very happy with his work. Unfortunately, one of the beams that held up the roof of the gazebo had a large crack that was hidden from their view. The Harrison family used the building for over a year without realizing that it was not structurally sound.
In August 2014, 5-year-old Timmy Harrison was playing on the floor of the gazebo when the cracked beam finally gave out. He managed to get out of the structure before it collapsed, but some of the debris from the building hit him as he was running away. Timmy was rushed to the hospital, where the doctors treated him for a broken arm.
The Harrisons sued Tucker to pay for the property damage and their son’s medical expenses. When Tucker filed a claim with his insurance company, he found out that his policy had a manifestation provision. He was unable to claim the benefits from his insurance policy because the damage was discovered after the initial policy year had ended.
Like Tucker, you may also have a manifestation provision in your general liability insurance policy. Talk with your insurance agent to make sure that your policy will protect you if you discover a problem after your policy term has ended.
At the StreetSmart Insurance, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (732) 462-8343 or Click Here to request a free quote