For many years, EIFS applicators, general contractors, building owners and EIFS distributors have had difficulty obtaining insurance coverage for EIFS applications. In many situations where EIFS coverage is obtained, it is expensive, rendering EIFS at a competitive disadvantage compared to other exterior wall cladding systems. The question arises: How can applicators, distributors and building/project owners buy coverage for EIFS and EIFS operations which are reasonably priced by insurance carriers?
The insurance industry is slowly responding to this lack of affordable coverage, but the EIFS industry, particularly EIFS applicators, continues to be hard-pressed to find it. Although it is scarce, the good news is that coverage is available. The big problem is the perils covered by the Commercial General Liability policy, which responds to claims for damage caused by alleged faulty EIFS installations. The CGL market for EIFS applications is particularly tough for new and/or claims-ridden clients, and if the coverage for EIFS cannot be obtained, the owner and/or designer may seek an alternative exterior wall cladding in place of EIFS.