What happens when you are at a client’s location and unintentionally damage their property? After all, accidents do happen. The addition of Voluntary Property Damage coverage to your policy can fill the gap in your general liability coverage and protect your business from the financial obligation to pay for a client’s damaged property.
Most, if not all, business liability policies exclude damage that you do to someone else’s property while it is in your Care, Custody, or Control. This would include damage to property that you are working on.
Voluntary Property Damage provides coverage for unintentional damage to the real property of others while that property is under your Care, Custody, or Control. Often added as an endorsement to General Liability policies, Voluntary Property Damage coverage, is significant for businesses that interact with customer property or provide services at a customer’s home or office. It is important to note that the damage caused to third-party property must be due to your business services.
Example:
Your carpet cleaning business is hired to deep clean the carpet of a client’s offices. One of your employees accidentally spills a concentrated cleaning chemical on the carpet permanently staining it. The addition of Voluntary Property Damage coverage to your policy would help cover the replacement of the carpet subject to the VPD limit.
Who needs Voluntary Property Damage coverage?
Voluntary Property Damage is especially important for contractors and cleaning services that must travel to various client locations to conduct business. When conducting business on third-party property, that property can often be seen as under your care, custody, or control.
Typical businesses that are at risk of damaging property under their care, custody, or control include:
• Appliance repair services
• Carpenters
• Carpet cleaning
• Electricians
• Flooring services
• General contractors
• Gutter cleaning
• Handymen
• House cleaning
• Janitorial services
• Landscapers
• Painters
• Pest control services
• Plumbers
• Pool cleaning
• Window cleaning
Example:
A window-washing contractor breaks a window while cleaning it. Without Voluntary Property Damage, the contractor would be responsible for the cost of replacing the window since it’s property he was working “on.” Traditional General Liability coverage would cover a damaged car below the window if the window washer dropped a bucket or squeegee and damaged it but not the window. Add VPD, and you will be protected against this type of loss.
Anderson Insurance Group – Salt Lake City – Utah – 801-262-1551