Coverage Spotlight: Contractors Professional & Pollution Coverage
When contractors purchase General Liability (GL) and CPL policies, they should be aware that professional services are typically excluded from these policies. If a claim is tendered under a GL or a CPL policy and a carrier determines that some of the services that the contractor was performing are actually professional services, this can become a big problem and in the worst case scenario preclude coverage.
General Liability policies may offer some professional liability coverage, such as those related to bodily injury or property damage; however, many of them do not provide coverage for economic damages. Therefore, if an insured is brought into a claim for the replacement of a structure or similar economic damage, there would be no coverage under the General Liability policy. In addition, most General Liability policies include a pollution exclusion or very limited pollution coverage. This coverage is often not enough to investigate a pollution condition, let alone remediate it.
- General Contractors
- Electrical Contractors
- Construction Managers
- Site Prep Contractors
- Plumbing Contractors
- Pipeline Contractors
- HVAC/Mechanical Contractors
- Any contractors that, in the course of their normal operations, may make a slight adjustment on the provided plans to get the job done properly, or who supervise other subcontractors.
Financial Assurance for Storage Tanks
Financial Assurance (FA) regulations for underground storage tank owners/operators were first put into place with the 1986 amending of Subtitle I of the Resource Conservation and Recovery Act (RCRA). These regulations require owners/operators to prove they have…Read the full article.
Working with a carrier new to environmental insurance? Read this.
It’s a practice as old as insurance itself. A new or existing carrier decides that they want to enter into a new market. In order to be as effective as possible, they differentiate themselves by coming in with rates that are substantially lower than the segment’s average. This always seems… Read the full article.
Recent Success Stories
- A portfolio of hotels, both operating and under reconstruction purchased a 3-year $3M/$3M EIL policy (including Mold and Legionella) for $43,600.
- $15M Civil/structural engineer & environmental consultant purchased GL/CPL/E&O (with Professional liability retroactive date going back to 1994) for $104,746.
- $23M General contractor purchased CPL/E&O, including EIL, NODS, TPL, and Mold for $16,147.
- $5M Abatement and demo contractor purchased GL/CPL/E&O ($1M/$2M), Excess ($5M), and Auto ($1M CSL) for a total of $253,616.
- Bulk petroleum storage company purchased GL/CPL ($1M/$2M), EIL ($10M/$10M) including aboveground storage tanks and scheduled underground storage tanks, and a $5M Excess policy for a total of $108,727.
- Large portfolio of adult home/senior care centers purchased a 3-year, $1M/$5M EIL policy, including Mold, Legionella, scheduled underground storage tanks, and all aboveground storage tanks. Premium totaled $139,222.