Environmental hazards can devastate a business. Make sure you have the correct coverage.
Contractors, real estate developers, and many other industries face environmental risks. Your standard property and casualty policies do not cover these types of exposures.
The different types of Pollution insurance help protect companies from an array of environmental liabilities. Whether it’s selling a building built on a brownfield (polluted site) or coverage for environmental claims such as mold, hazardous materials remediation, and other pollutants that arise out of any type of contracting operation, TSIB can secure the right Pollution coverage for your business.
Make sure you don’t have any gaps in coverage with one of the pollution coverages below.
Benefits and Features Overview
Pollution Legal Liability (PLL) Insurance
Pollution Legal Liability (PLL) is an environmental insurance policy that provides insurance coverage for the environmental risks associated with owning, developing or operating a facility or site. PLL is also a risk-management tool, with coverage that can help protect buyers and sellers from environmental liabilities in business transactions, for instance, selling a building built on a brownfield (polluted site). PLL provides environmental coverage for losses due to on-site or off-site pollution conditions, coverage for pollution conditions resulting from transportation and coverage for owned or non-owned disposal site-related environmental liabilities.
Benefits:
- Provides coverage for past, current, and future environmental exposures.
- Provides assurance for unknown environmental liabilities in asset transactions.
- Commonly accepted in lieu of environmental indemnities or can be structured to wrap around indemnities.
- Insures against business interruption losses resulting from pollution conditions.
- Enhances financing prospects by allowing creditor protections.
- When broadly structured, can fill the gap found in most General Liability policies.
Features:
- Policy Term: Up to 10 years – Project policies insuring specific projects including completed operations coverage. Annual policies for single properties of large property schedules are available.
- Limits: Maximum Limits Varies By Carrier.
Contractor’s Pollution Liability (CPL)
The General Liability Policy (CGL) provides very little coverage for Bodily Injury and Property Damage arising out of a Pollution Condition, if at all. As a result, contractors concerned about their exposure to pollution can turn to the Contractor’s Pollution Liability (CPL).
The CPL provides contractors coverage for bodily injury, property damage, loss of use of the property, and clean-up for environmental claims such as mold, hazardous materials remediation, and other pollutants that arise out of any type of contracting operation.
Benefits:
- Defense against potential frivolous lawsuits or complaints brought against you not covered under the General Liability Policy (CGL).
- Mold liability coverage can be included.
- Premises pollution coverage for the contractor’s (Insureds) owned, leased, and rented properties available by endorsement.
- Coverage for punitive damages (where allowable by law) can be provided.
Features:
- CPL can be offered on an occurrence or claims-made basis.
- Coverage can be added for:
- Diminution in value
- Legal Defense Expense – separate sublimit for defense
- Natural Resource Damage
- Reasonable Costs to Respond to Public Health Threat
- Civil Fines, Penalties and Assessments
- Policy Term: Annual Policies for Contractor’s own activities.
- Project Policies are also available for ALL CONTRACTORS working on a specific construction project: Policies insuring specific projects including completed operations coverage.
- Limits: Maximum Limits Varies By Carrier.
Contractor’s Professional & Pollution Liability
Contractor’s Professional and Pollution Liability (CPPL) policy offers a cost-effective solution for firms that require insurance coverage for both professional and environmental liability exposures. This line bridges the gap between environmental and non-environmental firms like construction managers, design-builders, and general contractors.
Benefits:
- Professional and pollution in one policy.
- Mold liability coverage can be included.
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Premises pollution coverage for owned, leased, and rented properties are available.
- Coverage for punitive damages (where allowable by law) can be provided.
Features:
- Policy Forms: CPPL can be offered on an occurrence (Pollution Coverage Part) or claims-made basis (Professional Coverage Part).
- Some CPPL products also offer a first party “protective” coverage – indemnity for damages in excess of an underlying design professional’s professional liability policy or Rectification coverage to fix design errors before they turn into Professional Claims.
- The CPPL can be written on a project-specific basis or practice/blanket basis.
- Policy Term: Up to 5 years including completed operations coverage for project-specific policies. Annual policies are also available.
Related Content
What Does Pollution Liability Cover?
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