Oops! Is "Your Work" Considered "Complete" If You Get Fired?
A contractor hired to build a detached garage was fired after completing only the framing and roof sheathing, and the homeowner immediately brought in a second contractor to finish the job. Weeks later, after the replacement contractor had resumed work, rain got in through improperly installed flashing the first contractor had put up, damaging the framing and newly installed insulation. The original contractor argued the claim fell within the Products-Completed Operations Hazard because his operations had already ended by the time the damage occurred. Notable Timestamps [ 01:00 ] - A contractor hired to build a detached garage is fired after only finishing the framing and roof sheathing. A second contractor finishes the job, and later water damage traces back to flashing the first contractor installed. [ 03:45 ] - The team explores the policy's definition of "your work" under the Products-Completed Operations Hazard to work through whether the fired contractor's operations had actually ended. [ 04:54 ] - The three ways work can be deemed completed under the definition: (a) all contracted work finished, (b) all work at the job site finished, or (c) the work put to its intended use by someone other than another contractor or subcontractor. [ 05:40 ] - Applying part (a), the team debates whether the fired contractor's work could be considered "completed" simply because he was removed from the job before finishing. [ 12:34 ] - Part (c), intended use, may be the stronger fit here, since the replacement contractor built on top of the original work. [ 14:19 ] - The original contractor's work wasn't "put to its intended use" until someone else finished it. Getting fired isn't the same as abandoning a job. [ 19:23 ] - The relevant exclusions treat subcontractors differently. [ 22:51 ] - The team recaps the three key takeaways on when a contractor's work counts as "completed." Your PLRB Resources Case Law: Clarendon America Ins. Co. v. General Security Indemnity Co. of Arizona (2011) - https://members.plrb.org/documents/clarendon-america-ins-co-v-general-security-indem-co-of-arizona-2011 Policy Annotation: Your Work Defined (GL112) - https://members.plrb.org/documents/gl112-your-work-defined Policy Annotation: Your Work Exclusion (GL52) - https://members.plrb.org/documents/gl52-your-work-exclusion Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys ( https://www.plrb.org/ask-plrb/) at no additional charge to you or your company. Subscribe to this Podcast Your Podcast App - Please subscribe and rate us on your favorite podcast app YouTube - Please like and subscribe at @plrb LinkedIN - Please follow at "Property and Liability Resource Bureau" Send us your Scenario! Please reach out to us at 630-509-8704 with your scenario! This could be your "adjuster story" sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to scenario@plrb.org . Legal Information The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate. Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License. Font: Metropolis by Chris Simpson. SIL OFL 1.1. Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription). Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).
