Your Work Exclusion
Also known as: Damage to Your Work Exclusion, Exclusion (l)
The your-work exclusion is exclusion (l) in the standard commercial general liability policy, which bars coverage for property damage to your work arising out of it or any part of it, once that work is in the products-completed operations hazard. The underlying rationale is a business-risk principle: liability insurance is not a performance guarantee. A contractor controls the quality of its own work, so the cost of redoing defective work is a business expense, not a fortuitous insured loss. The exclusion keeps the CGL focused on third-party damage rather than warranty repairs.
For contractors, this exclusion defines the line between what your policy pays and what comes out of your own pocket. If your faulty installation damages a customer's other property, that is typically covered; if the only damage is to the work you performed, the your-work exclusion generally applies. Misunderstanding this is a common and costly surprise — buyers sometimes assume general liability will fund callbacks and rework, then discover it will not. This is why subcontractor default insurance, surety, and careful contract drafting, rather than the CGL alone, address workmanship risk.
The crucial nuance is the subcontractor exception: the your-work exclusion does not apply if the damaged work, or the work causing the damage, was performed by a subcontractor on your behalf. This carve-back — related to broad form property damage — is why general contractors who hire trade subs often have meaningful coverage for defect-related damage that a self-performing contractor would not. Because insurers sometimes attach endorsements that delete this exception or expand the exclusion, buyers should confirm the subcontractor exception survives in their form and understand how it interacts with products-completed operations coverage.
In the current ISO Commercial General Liability Coverage Form (CG 00 01), the “Damage to Your Work” exclusion appears as exclusion (l) under Coverage A, directly following the related exclusion (k) for “Damage to Your Product” among the policy’s business-risk exclusions.
Real-world scenario
Summit Ridge Roofing LLC, a nine-employee commercial roofing contractor in Ohio, carries a general liability policy that costs $4,800 a year, with a $1,000,000 per-occurrence limit and a $2,000,000 aggregate. The company wins a $62,000 contract to re-roof a two-story office building. Ten months after the job wraps, a poorly sealed seam lets rain seep in during a storm.
The total loss comes to two very different buckets. Repairing the interior — soaked drywall, a ruined server room, $9,500 in damaged hardwood flooring, and $6,200 of destroyed office inventory — adds up to $41,000 of damage to other property. Separately, tearing out and reinstalling Summit's own defective roof will cost $28,000. Because the failure surfaced after the project was complete, the claim falls under the policy's products-completed operations coverage rather than ongoing operations.
When Summit files the claim, the CGL adjuster applies the your work exclusion. The insurer refuses to pay the $28,000 to redo Summit's own faulty roof — fixing your own defective work is a business cost, not an insurable accident. But it does pay the $41,000 of resulting damage to the building owner's other property — less Summit's $500 deductible — plus $12,000 in defense costs, for a net insurer payout of $52,500. Summit absorbs the $28,000 rework out of pocket, adds an $850 additional-insured endorsement for future jobs, and sees its renewal premium climb by $3,300 to $8,100.
How it affects your premium
The your work exclusion is a standard part of every ISO commercial general liability form, so it does not carry a separate charge — but the same underwriting factors that shape how much of your completed work is exposed also drive your overall premium:
- Trade and defect frequency — roofers, foundation contractors, and waterproofers generate more "damage to your own work" claims, so carriers price their completed-operations exposure higher than low-risk trades.
- Use of subcontractors — the exclusion has a subcontractor exception, so work performed by insured subs may still be covered; carriers weigh how much you sub out versus self-perform.
- Completed-operations aggregate limit — the size of your aggregate limit for post-project claims directly affects premium.
- Annual receipts or payroll — larger revenue means more completed jobs in the field that can fail later, raising exposure.
- Warranty and workmanship history — a record of callbacks, defect claims, or prior rework signals higher risk to underwriters.
- Job type and duration — long-tail construction defects (structural, water intrusion) price higher than cosmetic or short-lived work.
- Contract requirements — additional-insured and hold-harmless demands from general contractors can widen the exposure the carrier must price.
Common misconceptions
Myth: The your work exclusion means my general liability policy covers nothing if my workmanship is bad.
Reality: It only bars the cost to repair or replace your own defective work — resulting damage to the customer's other property is generally still covered. If a bad weld causes a fire, the policy won't buy you a new weld, but it can pay for the burned building and the rip-and-tear needed to reach the defect.
Myth: Damage caused by my subcontractor's faulty work is always excluded too.
Reality: The standard CGL includes a subcontractor exception: property damage arising out of work performed on your behalf by a subcontractor is typically carved back into coverage. This is separate from the broad form property damage and impaired-property provisions that can further shape what is and isn't covered.
Myth: The your work exclusion is the same thing as a warranty or a performance bond.
Reality: It is neither — liability insurance never guarantees the quality of your work. Redoing defective work is a business cost, which is exactly why carriers exclude it and why contractors carry warranties or a performance bond separately.
Frequently asked questions
What exactly does the your work exclusion take away?
Does the exclusion apply while the job is still in progress?
How does the subcontractor exception work?
How long after a job can a your work claim arise?
Can I insure the cost of redoing my own bad work at all?
Sources cited
Need your work exclusion coverage?
Compare quotes from 10+ commercial insurance carriers in 5 minutes. Free, no contact info required.
Get My Quotes →