Plumbers, Roofers, and HVAC Contractors–Do Non-Environmental Contractors Really Need Pollution Coverage?
There is a common misconception in our industry about pollution exposures. “If my client doesn’t deal with hazardous materials, then he or she doesn’t have an exposure.” Yes, anyone handling radioactive, explosive, toxic, or biohazardous material certainly has an exposure. But in reality, ALL contractors have an exposure to pollution.
CGL policies exclude most claims arising from a “pollution condition.” A pollution condition is generally a release of pollutants. According to many CGL policies, a pollutant is any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Based on this, any substance that meets this definition is a pollutant. Can your client’s operations cause any of these things to happen? If the answer is yes, then there is a pollution exposure.
Contractors Pollution Liability insurance (CPL) is coverage designed to protect from third party claims for damages caused by “Pollution Conditions” arising from the insured’s covered operations. Adding Mold coverage broadens the defined list of covered pollutants to include molds, funguses, etc. Read more.
Product Spotlight: Coverage for Environmental Facilities
PartnerOne Facilities Casualty & Pollution is a package policy that provides General Liability and Site Specific Pollution Liability, as well as Contractors Pollution Liability and Products Pollution Liability. It can be structured using Occurrence, Claims-Made, and Claims-Made and Reported coverage forms and will cover work performed by or on behalf of the named insured (work by subcontractors).
Here are just a few examples of sites that should have Site Pollution Liability in place:
Wastewater Treatment Plants
Wastewater treatment plants can be found all over the United States, and are designed to clean used water and sewage so that it can be returned safely to our environment. This wastewater comes from homes, schools, businesses, groundwater runoff, and storm water infiltration, and must be sent through several processes in order to safely remove solid particles, reduce pollutants, and restore oxygen. The chemicals and machinery used in processing wastewater and the resulting solids/sludges can cause bodily injury to workers, site explosions, pollutant discharge into the soil, water, and/or air, and a whole host of other problems that can result in an insurance claim.
As more materials are shipped to local recycling centers, these facilities are increasing their environmental exposure, sometimes without knowing it.Â Materials may arrive that cannot be recycled, thus proper disposal is required. The influx of goods means longer periods of storage, and the recycling machines are running for longer periods of time, consuming more fuel. In addition, more traffic on these sites may increase the potential for the accumulation of petroleum hydrocarbons in the soil.
For more coverage details and minimum premium information, click here.
Enviro Green Contractors & Consultants
PartnerOne provides coverage for enviro green contractors & consultants starting at just $2,500. Target risks include:
- Solar Contractors/Consultants
- Wind Contractors/Consultants
- Geothermal Contractors/Consultants
- Weatherization Contractors/Consultants
- LEEDS/ Sustainable Development Consultants
- Energy Efficiency Consultants
Recent Success Stories
$3.5M General construction contractor purchased a $5M/$5M project-specific CPL policy for $14,772.
$900k Non-destructive testing, corrosion consulting, and leak detection company purchased a $1M/$2M GL/CPL/E&O policy, plus a $2M Excess policy for $16,593.
$300k Company specializing in pressure washing oilfield equipment purchased a $1M/$2M GL/Broad Form CPL policy for $5,500 through the PartnerOne Energy Select Program.
$1M Industrial contractor specializing in tank & railcar cleaning (as well as vapor recovery services) purchased a GL/CPL policy ($1M/$2M) and a $10M Excess policy for $36,000.
Mixed retail facility (no auto-related or dry cleaning) purchased a $1M/$1M EIL policy for $5,310. Premium was for a 3-year term, 10k SIR, time element restricted.