With recent concerns of Sprinkler Contractors relating to insurance coverage on malfunction of heads in projects they have installed I would like to answer some frequently asked questions.

If a head installed by a contractor fails during a fire are they covered?

The standard ISO (Insurance Services Offices, Inc.) form general liability policy provides coverage for Bodily Injury and Property Damage subject to the policy limits you purchased. CNACommercial Insurance does use the ISO form for their general liability policies and does provide coverage for this type loss.

Does a contractor have insurance coverage for the replacement of Sprinkler Heads that are known to be defective?

No, there is no coverage under a general liability policy for damage claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of (1) your product (2) your work (3) impaired property, if such property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. You do however have bodily injury and property damage coverage for a loss, but not the replacement cost of heads being replaced.

Should a sprinkler contractor use reasonable force to protect persons or property?

Yes, a contractor should use reasonable force to inform and protect property owners. This is not only a moral issue but under the exclusions in a standard ISO general liability policy, section (a), you are required to inform owners of property with reasonable force of issues that are "Expected or Intended Injury".

If I as a contractor have Completed Operations coverage under my general liability do I have coverage for replacing sprinkler heads that may have been recalled or are deemed deficient?

It is extremely rare for a sprinkler contractor to carry this form of coverage, you must check with your agent to see if this is included in your general liability policy.

Does my umbrella policy extend to the above losses?

If you have the ISO form general liability with CNA Commercial Insurance, your coverage does extend to the policy limits of your umbrella.

A sprinkler contractor insured through CNACommercial Insurance is covered for loss under their general liability for Bodily Injury and Property Damage.

What if I am not insured through CNACommercial Insurance?

You must check with your local agent and ask them if the general liability policy you have is an ISO form and if you have coverage for the above situations.

I hope this helps in your questions and if you would like any information or have any questions concerning your coverage for specific types of losses, please call me at 1-800-929-9886 or email me at BobL@Spindle.Net and I will be glad to help.