Adverse loss related to contracted work continues to rise. Emerging contaminants and severe weather events have resulted in an increased awareness of the potential benefits of environmental liability protection. Yet, many construction insurance programs exclude or limit coverage for loss arising from pollution events. Therefore, separate pollution liability coverage should be considered to help address often encountered challenges.
Contractors pollution liability (CPL) is specifically designed to provide coverage for legal liability for third-party claims for bodily injury, property damage, and cleanup costs resulting from the exacerbation of pre-existing conditions, or by the creation of new pollution conditions that arise out of contracted work. Scope of cover typically includes:
- Sudden and gradual pollution events arising from ongoing or completed work (including releases to indoor/outdoor air, surface water, groundwater, or soil).
- Temporary storage of construction equipment and materials at laydown yards.
- Transportation and disposal of waste materials.
- Legal defense expense.
- Enhanced site liability coverage for additional owned/leased sites supporting contracted work.
CPL is offered on an occurrence or claims-made basis; form use is often directed by contract requirements or underwriting guidelines related to class of business. Multiple policy options are available to meet growing industry requirements:
- Annual or multi-year practice programs
- Project policies
- Owner controlled or contractor controlled programs
- Combined forms with professional and general liability are also offered for certain risks
There is a difference between meeting contractual requirements and having enhanced coverage. It is important to understand the environmental solutions that can help protect your financial investment. Our team of environmental specialists has extensive experience in delivering innovative risk management solutions to contractors, project owners/sponsors, and lenders and can assist you in addressing today’s most pressing risk management concerns and protecting your projects from inception through completion.