Determining the Best Way to Alleviate Risk Surrounding Repair Work

Too much of a good thing is a very real thing when dealing with insurance.

Sometimes less is better when dealing with repair work coverage. What makes it even worse, is that a lot of people struggle to understand the complexities of endorsements.Seen as work coverage enhancements, repair work endorsements oftentimes provide no additional benefit. Repair work coverage often protects against bodily injury and property damage resulting from repairing something that has already been completed. A problem occurs when this coverage is in use concurrent with a products-completed operation (PCO) extension, which is the same thing. When an injury occurs, an insurer often selects the coverage that benefits them the most, hurting the company.

Since insurance companies often take this approach, it begs the question, “Is repair work coverage even beneficial?”

The answer is a little more complicated than a yes or no. First, it depends if a company already has a products-completed operation extension. If a company doesn’t, then it would make sense to buy repair work coverage as one should always have some protection when repairing finished products. If a company does have a PCO, a company should only get repair work coverage if there is a glaring hole in the PCO or if there is no detriment that can arise from conflicting terms between the two plans. As mentioned before, these plans are pretty complicated, so they should be read over with diligence and scrutiny to catch any conflicting terms.

Many problems can arise if these separate coverages are not implemented correctly. To start, having no coverage at all can result in hefty payouts as there is no protection for workers. Yet, having both plans can be a waste of money that doesn’t provide any extra benefit. Thus, it is important to find a happy medium between repair work coverage and a PCO extension. Doing so can ensure a company for repairs while spending the least amount of money possible.