Understanding Faulty Workmanship Cover in Marine Liability Policies

Marine trades face a constant risk of things not going perfectly to plan. A small mistake, such as a loose fitting or incorrect installation, can cause expensive damage.

Many standard Marine Liability Insurance policies exclude faulty workmanship. That means if your work needs to be redone due to an error, the cost to fix your own mistake is typically not covered.

Some insurers offer a “Rectification of Faulty Workmanship” extension, a valuable cover for the costs of re-performing or correcting defective work if it leads to property damage or injury.

What the Policy Wording Says

Australian marine insurers vary in how they treat faulty workmanship:

• Proteus Insurance includes a Rectification of Faulty Workmanship Extension, which overrides the standard exclusion and provides cover up to a sub-limit.
• Nautilus Marine’s Marine Trades Liability policy also offers similar protection, covering certain costs to re-perform work with insurer approval.
• Trident and Berkley Insurance follow similar wording, where the extension applies only if the faulty work has resulted in third-party loss or damage.

In short: Marine Liability Insurance doesn’t automatically cover faulty workmanship, but it can if this specific extension is included in your policy.

What’s Typically Not Covered

It’s important to know where the line is drawn. Marine insurers generally won’t pay for:

• The cost to redo your own work if there was no resulting damage or injury.
• Claims for poor design, advice, or specification (these may require Professional Indemnity Insurance).
• Any work performed outside the scope declared in your policy.

That’s why reading your policy wording carefully and knowing what’s included is critical.

How Morgan Insurance Brokers Can Help

At Morgan Insurance Brokers, we understand that marine work is complex and so are the risks. Our team specialises in Marine Liability Insurance for trades and professionals working on or around the water, including electricians, plumbers, engineers, and boat repairers.

Here’s how we can assist you:

• Policy Review & Advice: We’ll review your current policy wording to see whether it includes a faulty workmanship or rectification extension and explain exactly what it means for your business.
• Access to Specialist Insurers: We work directly with Australia’s leading marine insurers, such as Nautilus, Proteus, and Trident, to secure policies that fit your trade.
• Tailored Coverage: We’ll recommend additional protection if needed, like Professional Indemnity, Tools & Equipment, or Income Protection ensuring you’re covered from every angle.
• Claims Assistance: If something goes wrong, we’ll handle the claim for you, liaising with the insurer to achieve the best possible outcome.

With Morgan Insurance Brokers, you get more than a policy you get a team that genuinely understands marine industry risks and works to protect your livelihood.

Final Thoughts

While many Marine Liability Insurance policies exclude faulty workmanship, adding the right extensions can make a big difference. Having an experienced broker on your side ensures you know exactly where your cover starts, and where it stops.

If you’re unsure whether your policy covers faulty workmanship, or you’d like to review your marine insurance options, Morgan Insurance Brokers can help.

Get a Quote