Fast, Free and No Risk Why Your GL Policy Doesn’t Cover “Your Own Work” (The Care, Custody, & Control Exclusion)
Quick Answer: General liability (GL) insurance does not cover the cost to repair or replace your own faulty work or property under your control. This is due to the “your work” exclusion and the care, custody, and control (CCC) exclusion, which remove coverage for work you perform or property you’re responsible for
GL may still cover resulting damage to other property, but not the defective work itself.
Bottom line: if you damage something you’re working on—or your work fails—you typically pay for it unless you have additional coverage like an installation floater or properly structured risk transfer.
Before relying on your policy, you need a clear understanding of what general liability actually covers—and where its limitations can leave you exposed. Contractor General Liability Insurance: Cost, Coverage & Requirements (2026 Guide)
GL “Your Work” & CCC Exclusion – Key Facts
- Core Limitation: General liability insurance does not cover the cost to repair or replace your own faulty work
- Main Exclusions: Coverage is removed by the “your work” exclusion and the care, custody, and control (CCC) exclusion
- What “Your Work” Includes: Your labor, subcontractor work, and materials or equipment you provide
- Key Coverage Rule: Defective work itself is excluded—only resulting damage to other property may be covered
- CCC Exclusion: No coverage for property you are working on, storing, or responsible for at the jobsite
- Common Claim Denials: Faulty workmanship only, damage limited to your scope of work, or property under active control
- Subcontractor Exception: May restore coverage for resulting damage caused by a subcontractor—but not the defective work itself
- Financial Impact: Contractors often pay out-of-pocket for repairs, legal defense, and increased future premiums
- Coverage Gap: GL is liability coverage—not property insurance for your work in progress
- Best Solution: Use installation floater or builder’s risk policies to cover materials, work in progress, and controlled property
- Best Practice: Align insurance with contracts, verify endorsements, and structure layered coverage to avoid uninsured losses
▶ View Transcript
[00:00] If you think your general liability policy covers everything on your jobsite, you’re wrong—and it can cost you.
[00:04] GL insurance is designed to cover third-party damage—not the cost to fix your own work or property you control.
[00:09] Two key exclusions drive this: the “your work” exclusion and the care, custody, and control—or CCC—exclusion.
[00:14] That means if your work is defective, or something gets damaged while you’re working on it, you’re typically paying out of pocket.
[00:19] Here’s a real example: you install HVAC equipment, and it’s damaged before completion.
[00:24] GL policy? No coverage. Why? It’s your work, and it’s under your control.
[00:28] But if that faulty work causes damage to other property, that’s where coverage may apply.
[00:33] This is where most contractors get caught off guard—they assume they’re covered, but the policy was never designed for that risk.
[00:39] The fix isn’t hoping your GL responds. It’s structuring your coverage correctly.
[00:43] That means using tools like installation floaters, builder’s risk policies, and making sure your contracts and endorsements actually match your exposure.
[00:50] Because if you don’t account for these gaps, you’re not just underinsured—you’re guaranteeing future losses come out of your pocket.
[00:56] If you’re not sure your coverage is set up right, fix it before a claim hits.
[01:00] Visit SuretyFirst.com and request your fast general liability insurance quote today.
Why GL Insurance Does Not Cover Your Own Work or Controlled Property
The Commercial General Liability (CGL) policy is designed to cover third-party damage, not the cost to fix your own work. Two core limitations drive this: the “Your Work” exclusion and the Care, Custody, and Control (CCC) exclusion. If the property is yours, being worked on by you, or under your control, coverage is typically removed. The policy may still respond to resulting damage, but not to repair or replace the defective work itself.
To see how this fits into your overall coverage, it’s important to understand the full structure of a general liability policy—including all major exclusions and how they impact your risk. Complete Guide to Contractor GL Coverage & Common Exclusions
What “Your Work” Means
“Your work” includes:
- Work performed by you or on your behalf (including subcontractors)
- Materials, parts, or equipment you furnish
- Completed operations tied to your contract
Key implication:
If your work is defective and must be repaired or replaced, that cost is excluded.
Important nuance:
- Completed operations may cover resulting damage after the job is finished
- Some policies include a subcontractor exception, which can restore coverage for resulting damage caused by a subcontractor’s faulty work—but still not the cost to fix the work itself
To fully understand how “your work” is treated over time, you also need to know how your policy form—claims-made vs. occurrence—affects when coverage actually applies and how long you’re exposed. Claims-Made vs. Occurrence: Why the “Tail” Matters for Contractors
CCC Exclusion Explained
The Care, Custody, and Control (CCC) exclusion removes coverage for property that is:
- In your physical possession
- Under your control or supervision
- Actively being worked on
Typical scenarios:
- You’re installing flooring → damage to that flooring is excluded
- You’re repairing a roof → damage to the portion being worked on is excluded
- You’re storing materials onsite → damage to those materials may be excluded
Why it exists:
GL policies are not meant to function as property insurance for your operations. They are designed to protect against liability to others, not damage to property you control.
Because exclusions like CCC redefine how responsibility is handled on a project, it’s also important to understand how other contract provisions—like waivers of subrogation—further impact risk transfer between parties. Waiver of Subrogation: What It Is and Why Your Contract Requires It
Common Claim Denials
Most denials tied to faulty work and CCC come from predictable issues:
- Defective workmanship only
No resulting damage—claim denied - Damage to the work itself
Repair/replacement of your own scope is excluded - Property under active work
CCC exclusion applies - Contract assumes coverage exists
Policy does not match contract requirements - No subcontractor exception or endorsement
Coverage narrower than expected - Improper classification of labor
Subs treated as employees, shifting exposure back to you. Learn more: Contractor Insurance Audits: How to Avoid a Massive “End-of-Year” Bill
Result:
- You pay for repairs
- You defend the claim
- Loss impacts your future premiums
To understand why these outcomes occur, it helps to see how a general liability claim actually unfolds—from the initial incident through defense, payment, and long-term impact on your policy. How Does a General Liability Insurance Claim Work for Contractors?
How to Fill the Gap
You don’t “fix” this with standard GL—you manage it through coverage structure and risk transfer:
- Installation Floater / Builder’s Risk (inland marine)
Covers materials, property, and work in progress - Professional Liability (for design/build exposure)
Covers errors, omissions, and faulty design decisions - Strong subcontractor controls
Additional insured + indemnity + verified coverage. Learn more: Subcontractor Liability: Are You Responsible for Their Mistakes? - Contract alignment
Make sure your policy matches contract obligations - Adequate limits and endorsements
Especially for completed operations
Before you can align your policy with contract requirements, you need to understand what coverage limits are actually appropriate for your projects and risk exposure. How Much General Liability Insurance Do Contractors Really Need?
Bottom line:
GL is only one piece. Without supplemental coverage, you are absorbing predictable losses.
The Installation Floater: Closing the Care, Custody, and Control Gap
An installation floater is specifically designed to cover what GL excludes—property, materials, and work you are installing while it’s in your control.
What it covers:
- Materials in transit or stored at the jobsite
- Property during installation
- Work in progress before completion
- Damage caused by theft, fire, vandalism, or accidents
Why it matters:
- Directly addresses the CCC exclusion gap
- Protects your financial interest in materials and labor
- Often required on commercial projects or higher-value jobs
Example:
- You install HVAC equipment → it’s damaged before completion
- GL: No coverage (your work / CCC)
- Installation Floater: Covered
Best use cases:
- Contractors installing materials or equipment
- Jobs with high material value
- Projects where property is exposed before completion
If you work across multiple states, insurance requirements, limits, and compliance rules can vary significantly—understanding each state’s standards is critical to avoiding coverage gaps and licensing issues.
- Oregon CCB Liability Insurance Requirements: Limits by Residential vs. Commercial License
- Washington L&I Liability Insurance Compliance: The $250k Combined Single Limit Policy
- Multi-State Contracting: How to Add “Other States” Endorsements to Your GL Policy
- California LLC Employee/Worker Bond Requirements & The $1M Liability Insurance Mandate
- Arizona ROC Contractor Insurance: What You Need for Your License
- Nevada Contractor Insurance: Limits for Residential vs. Commercial
What GL Excludes vs. What Actually Protects You
Before you assume your general liability policy covers jobsite risks, this chart breaks down what’s typically excluded—and the coverage strategies that actually protect your business.
Bottom Line
- GL insurance is not designed to cover your own work or controlled property
- CCC and “your work” exclusions are intentional—and enforced
- The solution is layered coverage, not assuming GL will respond
If you don’t account for these gaps, you’re not just underinsured—you’re guaranteeing future losses will come out of your pocket.
Once you understand these coverage gaps, the next step is knowing how your policy is actually priced—and how your operations directly impact your cost and risk. Contractor GL Cost Guide: How Payroll, Sub-Costs, and Trade Impact Your Rate
If your coverage isn’t structured correctly, you’re taking on unnecessary financial risk—get a quote tailored to your actual operations and exposure.
Get a GL Insurance Quote Now →
Frequently Asked Questions
Does general liability insurance cover faulty workmanship?
No. General liability does not cover the cost to repair or replace your own faulty work. It may only cover resulting damage caused by that work, not the defect itself.
If your risk includes design errors or workmanship-related issues, you need to understand where general liability stops—and where professional liability coverage begins. Professional Liability Insurance for Contractors & Consultants
What is considered “your work” under a GL policy?
“Your work” includes labor performed by you or your subcontractors, as well as materials and equipment you provide. If that work is defective, fixing it is excluded from coverage.
What is the Care, Custody, and Control (CCC) exclusion?
The CCC exclusion removes coverage for property you are:
- Working on
- Holding or storing
- Responsible for on the jobsite
If the property is under your control, damage to it is typically not covered.
Does GL cover damage while work is in progress?
Usually no—if the damage is to the specific property you’re working on, the CCC exclusion applies. Coverage may only apply if other property outside your work scope is damaged.
What is “resulting damage” and when is it covered?
Resulting damage is damage caused by faulty work to other property.
Example: faulty plumbing causes water damage to walls or flooring.
- Faulty plumbing: not covered
- Water damage: may be covered
Does the subcontractor exception provide full coverage?
No. The subcontractor exception may restore coverage for resulting damage caused by a subcontractor, but it still does not cover the cost to repair the defective work itself.
Even when the subcontractor exception applies, it’s only part of the protection—understanding how additional insured endorsements actually extend coverage is critical to closing the gap. The “Additional Insured” Guide: Blanket vs. Scheduled Endorsements
Why are faulty work claims often denied?
Common reasons include:
- No resulting damage—only defective work
- Damage limited to your scope of work
- Property under your control (CCC exclusion)
- Missing endorsements or subcontractor protections
- Policy does not match contract requirements
What type of insurance covers work in progress?
An installation floater (or builder’s risk policy) is typically used to cover:
- Materials onsite or in transit
- Work in progress
- Property under your control
This fills the gap left by GL exclusions.
Does my contract override my insurance coverage?
No. Your contract may require coverage, but your policy language controls what is actually covered. If they don’t match, you can still be exposed.
Related General Liability Insurance Guides
Reviewed by: Jeremy Schaedler
Principal – Surety First Insurance Services
As principal at Surety First, Jeremy Schaedler has specialized in contractor license bonds and construction insurance since 2006. CA License: 0f06277
This information is for general informational purposes only and does not constitute legal advice. Licensing and insurance requirements may change. Contractors should verify current requirements directly with their state regulatory agency or consult qualified legal counsel.
Management team at Surety First Insurance Services, specializing in contractor license bonds and commercial insurance for contractors.
Why Contractors Choose Surety First
- Specializing in contractor bonds and insurance since 2006 (20,000+ served)
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- Fast approvals, often within minutes
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- Serving contractors across CA, OR, WA, NV, AZ
Phone: 1-800-682-1552
Website: suretyfirst.com
Sources
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- International Risk Management Institute – Detailed explanations of CGL exclusions, subcontractor exception, and completed operations
https://www.irmi.com - Insurance Information Institute – General liability insurance fundamentals and coverage structure
https://www.iii.org - National Association of Insurance Commissioners – Consumer guidance on business liability insurance and coverage limitations
https://content.naic.org
- International Risk Management Institute – Detailed explanations of CGL exclusions, subcontractor exception, and completed operations