Example One:
A builder in Tauranga was named as a defendant in a leaky home case, even though all he had done was correctly repair a window. He hadn’t even built the property! It cost him $40,000 just to be removed from the law suit. Can you afford to pay that? Even if you win, could you afford the legal fees to defend the case?
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Example Two:
A builder in Rotorua was forced by the WHRS tribunal to rectify weathertightness problems with a house he’d built. The owners had wanted a particular type of cladding, which he told them wasn’t up to spec. They insisted, so he made them find another installer themselves, he wouldn’t have anything to do with it. However, as he was managing the project, he paid the installer when the bill came in. Unfortunately, in the eyes of the tribunal that made him liable, even though he had paperwork to prove he had objected! He has paid tens of thousands in legal costs and damages, which would have been covered by E&O Indemnity. |
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Example Three:
A builder, working as a labour only contractor, had to pay $50,000 in legal fees and damages after a wrought iron balustrade installer penetrated the waterproof butynol lining of a deck he had built years before. He was found partly liable, despite not being involved in arranging or supervising the work. If he had an E&O Indemnity policy in place his costs would have been covered.
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Example Four:
Almost 10 years after he'd built the house a Hamilton builder was ordered to appear before the Weathertight Homes Resolution Service to defend claims he'd built a leaky home. The new owner wanted the house completely reclad on a cavity. The builder paid $20,000 in legal fees and $10,000 in compensation, when the only problem identified by the survey was actually caused by moisture penetration from a window box that had been installed many years later. If he'd had E&O cover the policy would have paid his legal costs and damages.
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