You installed a “heavy-duty” overhead rack in a garage. Two weeks later, it ripped out of the ceiling and crushed the hood of a Tesla Model Y ($15,000 damage). The client blames your installation. You blame the cheap lag bolts that came with the product.
Key Takeaways
- Installation Floater / GL: This covers damage caused by your work. If you missed the stud, your GL pays.
- Products Liability: If the rack itself failed (metal snapped), the manufacturer is liable. But the client will sue you first because you sold/installed it.
- Subrogation: Your insurance will pay the client (to make them happy) and then sue the rack manufacturer to get the money back (Subrogation).
- Fasteners Matter: If you used the kit hardware instead of upgrading to structural lag bolts, you are likely negligent. “Manufacturer defect” is a hard defense if the install was weak.
The “Why” (The Trap): “Your Work” Exclusion
If the rack falls, GL covers the Tesla (Resulting Damage).
It often excludes the cost of the Rack itself (Your Work).
So, insurance pays $15,000 for the car, but you have to buy a new $400 rack and re-install it for free.
The Investigation: The Tesla Crush
I analyzed the liability flow.
1. Did you hit the stud?
- My Analysis: The forensic adjuster will look at the drywall. If the hole is clean (pulled out), you missed the stud. That is Installation Error.
- Coverage: General Liability covers the car damage.
2. Did the bolt snap?
- My Analysis: If the bolt sheared off, it’s a Product Defect.
- Action: You tender the claim to the Manufacturer’s insurance.
3. Next Insurance (GL)
- My Analysis: Covers “Property Damage arising from Operations.” This is a standard covered claim.
Comparison Table: Who Pays?
| Cause of Failure | Your Insurance Pays | Manufacturer Pays | You Pay |
| Missed Stud | The Car | Nothing | The New Rack |
| Metal Fatigue | Nothing (Defense only) | The Car + Rack | Nothing |
| Overloaded by Client | Nothing | Nothing | Nothing (Client Fault) |
[IMAGE: Diagram showing proper lag bolt installation into a joist center]
Step-by-Step Action Plan
- Preserve Evidence: Do not throw away the fallen rack or bolts. The adjuster needs them.
- Photograph the Load: Take pictures of what was on the rack. Was it full of bowling balls and kettlebells? If they exceeded the weight limit, it’s their fault.
- File the Claim: Do not try to pay for a Tesla repair out of pocket. Body work on EVs is complex and expensive.
- Vendor Vetting: Only buy racks from reputable brands (Fleximounts, Gladiator) with US-based insurance. Cheap Amazon knock-offs have no insurance to subrogate against.
FAQ Section
Do I need a contractor’s license to install shelving?
In some states (like California), if the job is over $500, yes. If you are unlicensed, insurance might deny the claim for “Illegal Acts.”
Can I ask the client to sign a waiver for the install?
You can, but you can’t waive negligence. If you install it wrong, you are liable.
Does this cover me if I get hurt installing it?
No. That’s Disability/Workers Comp (see Article 3).