News From Beacon Hill – November 2015

Environmental Insurance Exposures: Construction Sites

As contractors begin planning for jobs in 2016, there has been an uptick in accounts written for contractors working on construction sites. The environmental exposures at construction sites have increased within the last decade as a result of new environmental regulations governing certain construction sites/activities, more public awareness of the materials emanating from these sites, and an increase in urban revitalization.

Environmental concerns for construction sites include:

  • Clearing, grading, and excavation activities.
  • Air emissions at construction sites.
  • Use of storage and containment of oil at construction sites.
  • Hazardous wastes that are generated at construction sites.
  • Changes in elevation of land associated with water bodies.

The insurance products that can respond to the environmental exposures at construction sites include Contractors Pollution Liability, Premises Pollution Liability, Transportation Pollution Liability, Storage Tank Liability, and Non-Owned Disposal Site Coverage. Contact us for more information.

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Beacon Hill Offers Flexible Solutions to your Accounts

Standalone Excess
Businesses needing to increase coverage limits for a project will often consider a Standalone Excess policy. This provides coverage beyond the limits of an underlying policy, and relies exclusively on its own policy/agreement, not on the primary. This is an easy way to increase the amount of coverage an insured has and to fulfill contractual requirements.

Project Specific Policies
Although a practice policy is important, many insureds need certain lines of coverage and limits for a project. A project policy addresses the specific requirements needed to secure work on a project and provides coverage for the exposures a contractor may encounter during it. The premium is typically based on job details and not on the job duration.

Construction Wrap Up Policies
Many property owners or general contractors planning a project will secure a construction wrap-up. This is a type of policy that is controlled by the site owner (OCIP) or construction manager (CCIP) and provides coverage for all contractors involved in the job. This type of policy not only protects the owner/manager, but also any subcontractors performing work, including excavation/grading contractors, HVAC, plumbers, electricians, drywallers etc. It also ensures that the limits on the policy are adequate and specific to the project. A construction wrap-up typically includes Contractors Pollution Liability for any issues resulting from the work performed by the contractors. A Completed Operations endorsement may also be added which will guarantee that coverage is in place for as long as the owner/manager needs it to fully complete the job.

Contact us for more information.

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Recent Success Stories

  • $11.5M Rapid response and clean up contractor purchased GL/CPL/E&O/Auto and a $10M Excess policy for $218,013.
  • $5M Fire and water restoration contractor purchased a $3M/$3M CPL/E&O policy for $11,017. Coverage includes TPL, Mold, NODS, and defense outside the limits.
  • An airport hangar purchased a $5M 5-year EIL policy for new and unknown preexisting conditions for $41,000.
  • $1.2M Plastic manufacturer purchased Products Pollution Liability for $10,000. The agent called after package carrier was requiring separate products pollution in order to bind coverage. Got a quote to them before the end of the day and bound it that day.
  • Two hospitals and five doctor’s office locations purchased a $1M/$1M EIL policy for $33,500.
  • $12M Plumbing contractor purchased CPL With Occurrence Mold ($2M/$2M limits) for $10,007.
  • Industrial cleaning/nuclear decontamination contractor purchased EIL for a leased location (for a job; 3rd party) for $3,402.
  • $650k Natural gas measurement company purchased CPL for $5,000.

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