Spotlight: Pollution Coverage for Carpet Installation Companies

Do you have a carpet installation or flooring company you need pollution coverage for? Submit it here.

Environmental exposures for carpet installation companies may include: the presence of chemicals used in the carpet manufacturing and preparation process, off gassing from adhesives and the carpet itself, potential mold growth in damp carpet, disposal of old carpet, and potentially disturbing contaminants from tearing up old carpet.

Insurance products for carpet installation and flooring businesses:

The insurance product that can address the environmental exposures for a carpet installation company is called a Contractors Pollution Liability (CPL) policy. This is a product that will respond to third party claims against these businesses for pollution conditions that they create or exacerbate. These claims may be for bodily injury as a result of chemicals being installed at a location, chemical application activities, property damage as a result of activities, or the ensuing cleanup costs related to these activities. A combined CPL/E&O policy is also appropriate for carpet installation companies.

Another product that carpet and flooring businesses should consider is an Environmental Impairment Liability (EIL) policy, also sometimes called a Pollution Legal Liability Policy (PLL). This product provides coverage for the business’s owned or leased locations. This includes coverage for third party bodily injury, third party property damage, and first as well as third party cleanup costs in the event the wood treatment employee creates a pollution condition on or off site. This is often used for locations where chemicals, wood/carpet/vinyl or equipment might be stored.

Transportation Pollution Liability coverage: this is a coverage enhancement that is designed to respond to event/spills that occur during the transportation of chemicals while they are being transported.

Non-owned Disposal Site coverage: this is a coverage enhancement that is designed to respond to claims against flooring companies for the waste they dispose of at non-owned disposal sites. These disposal sites can be brought into claims for bodily injury, property damage, or cleanup costs by third parties that have been adversely affected by the disposal site. What usually happens is the disposal site or environmental regulators will make a claim for cleanup costs, bodily injury, or property damage against anyone that ever took any materials or waste to the disposal site.

Pollution news stories & claims relating to flooring companies:

Carpet Manufacturers Fight Alabama Venue in Water Pollution Suits
Attorneys for the carpet industry argued before the Alabama Supreme Court Tuesday that two lawsuits alleging Georgia carpet manufacturers allowed contaminants to enter the drinking supply of Alabama cities should not be heard in that state’s courts.

Lumber Liquidators Class Action Lawsuit Investigation Over Formaldehyde Levels
Attorneys are trying to determine whether legal action can be taken against Lumber Liquidators in light of allegations that the laminate flooring contains illegal and potentially dangerous levels of the chemical formaldehyde.

California’s carpet industry to pay more than $1M for recycling failures
The California Department of Resources Recycling and Recovery (CalRecycle) announced March 30 that the Carpet America Recovery Effort (CARE) will pay the state of California $1,175,000 in penalties for its repeated failure from 2013 through 2016 to meet recycling and landfill diversion goals under California’s Carpet Product Stewardship Law.

Sheridan wood-preserving company fined for water pollution
State environmental regulators have fined a Washington company for discharging pentachlorophenal and copper to the South Yamhill River above permitted levels at its Sheridan wood preserving facility.

Danger of some laminate wood flooring was underestimated, report says
Everyone exposed to formaldehyde in some laminate flooring could experience adverse health effects, according to a revised report issued by several government agencies. The revised report, released Tuesday, also found lifetime cancer risk from the flooring to be higher than identified in the original version of the report.

CCA-Treated Wood Litigation and Insurance Coverage Issues
Product liability claims arising out of exposure to CCA-containing products may be brought by a variety of individuals. Potential claimants include purchasers of CCA-treated wood for use in outdoor decks or playgrounds, individuals injured by virtue of contact with structures made from CCA-treated wood, and contractors who work with CCA-treated wood in the course of their daily activities.

Homeowners Try to Assess Risks From Chemical in Floors
Most new floors emit small levels of formaldehyde. But it also seeps out of adhesives used to bind furniture and other household items, affecting the quality of the air residents breathe.

To request more information on carpet installation businesses, please contact us.