The Growing Need for Contractor’s Pollution Liability Insurance
Contractor’s Pollution Liability insurance (CPL) for environmental consultants and remedial contractors provides protection to a firm for third-party pollution claims (bodily injury, property damage) and clean up costs arising out of the contractor and contractor’s subcontractor operations. In addition to the “base” coverage for job site activities, CPL offers the ability to cover the transportation of waste and materials to and from non-owned disposal facilities, an insured’s legal liability at those disposal facilities, as well as some level of coverage for the insured’s owned/leased locations. Contractors today can also include emergency response cost coverage, which covers the costs incurred by an insured to prevent further damage, while reducing the likelihood of third-party claims.
Policies can be offered on a project or blanket program basis. Project policies provide coverage for all operations performed by the insured during the construction period and can include “tail” coverage (extended reporting period or ERP for claims-made policies and completed operations for occurrence policies) to address the statutes of repose in many states or other contractual requirements. A blanket program provides coverage on a yearly basis for all defined covered operations taking place during the policy term.
Today many environmental consultants and remedial contractors turn to CPL coverage as basic asset protection, securing the insurance required for large or even catastrophic loss scenarios at a reasonable premium. There are also contractual requirements to carry such coverage from owners, risk managers, government agencies and lenders that drive the purchase of CPL insurance.
In addition, having CPL insurance to provide for the defense costs alone may save a company involved in an environmental claim from financial ruin. It’s crucial that contractors are aware that there are pollution exclusions or coverage restrictions typically built into a liability, property, D&O and/or E&O policy, and specialized environmental insurance coverage such as the CPL policy is required to bridge thee coverage gaps. Without such coverage, the firm and its director and officers are in large part left unprotected given the fact that a loss can be far-reaching and potentially devastating to a company’s profitability and reputation.
Caitlin Morgan, a leading MGU and wholesaler, offers environmental liability solutions for a number of targeted classes, including for environmental or restoration contractors. We can help you secure the appropriate Contractors Pollution Liability coverage for your clients. Just give us a call at 877.226.1027.