A general contractor's insurance company had to cover damage to completed homes caused by a subcontractor's defective work. The Florida Supreme Court ruled that defective work by a subcontractor counts as property damage under standard commercial general liability (CGL) policies issued after 1986, as long as no specific exclusion applies. This matters to subcontractors because it means general contractors can potentially recover insurance proceeds for your defective work, which could lead to claims against you or your own insurance.
Your defective work can trigger the GC's CGL insurance coverage for the completed project—make sure you understand what your indemnification obligations are in your subcontract
Post-1986 CGL policies with products-completed operations coverage are broader than older policies; check whether your contract requires you to flow down specific insurance requirements to protect yourself
Broad indemnification clauses in your subcontract may require you to defend and pay for damage caused by your work even if the GC's insurance covers it—negotiate limits on indemnity scope before signing