Contractor's have sufficient coverage?

Example of drywall with joint compound, the co...Image via Wikipedia

An article I read recently in National Underwriter pointed out a potential gap in coverage for many contractors. It seems that some drywall used in the repair of homes from damage caused by Hurricane Katrina and other hurricanes/storms, has been the culprit in lawsuits being filed on the behalf of homeowners whose homes had the been repaired using the specific type of drywall that was purchased through a German firm from China. It seems that drywall gave off a strong odor and caused damage to electrical equipment and copper piping when exposed to heat and/or moisture. The potential gap in coverage is the lack of environmental coverage in the contractor's policies. The attorneys are filing against everyone from the importer to the contractors. You can't cover every potential claim but this illustrates how important it is perform a proper risk management survey when putting together coverage for your business.
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