What is a Contractors Pollution/Professional policy?
The Contractors Pollution Liability/Professional Policy is a combined Pollution and Professional coverage form. It provides coverage to general contractors, construction managers, and various trade contractors who could potentially have both pollution and professional claims; CPL/Professional provides coverage for E&O exposures for contractors.
Why do Contractors Need Professional and Pollution Liability Insurance?
Contractors face professional liability issues from construction management services, job site modifications, and other daily activities. Additionally, E&O exposures for contractors are generally excluded from General Liability and monoline Contractors Pollution Liability policies.
Coverage costs are reasonable and Beacon Hill provides excellent service during and after the binding process. Some examples of professional claims for contractors:
- A lawsuit was brought against HVAC contractor in northern California for negligent design of HVAC system when temperatures within condominium building exceeded 80 degrees during summer of unusually warm weather in the area. Historically, air conditioning was not included in buildings due to normal summer temperatures not exceeding the low 70s. The HVAC contractor did not include air conditioning in design and air conditioning was not requested by developer. Despite this, a professional claim was still brought against the HVAC contractor.
- A contractor was hired to act as an at-risk construction manager on a casino residence tower. The tower was estimated to be able to produce a gross income of $45,000 per floor per week from rental income. Additionally, gambling gains from the residents of the rooms was estimated to be $400,000 per floor per week. Time was of the essence for this project. Due to scheduling errors committed by the CM, the tower was completed four months behind schedule. The contractor was determined to be professionally liable for the delay and damages of $1,750,000.
What Coverage Enhancements are Available?
Coverage can be customized to the the needs of the insured. It is important to carefully review your client’s operations and activities to correctly address their insurance needs. Optional enhancements may include:
- Occurrence CPL coverage
- Natural Resources Damage
- Coverage for work performed by subcontractors
- Mold coverage
- Blanket Additional Insured
- Waiver of Subrogation
- Transportation Pollution Liability
What Type of Contractors Need Professional Liability Coverage?
Contractor clients should consider a combined Pollution and Professional policy addressing their daily jobsite exposures as well as any project contract requirements. Target risks may include:
- General Contractors
- Electrical Contractors
- Construction Managers
- Site Prep Contractors
- Plumbing Contractors
- Pipeline Contractors
- HVAC/Mechanical Contractors
- Millwright 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.
Contact Beacon Hill Associates
Please call (800) 596-2156 or contact us for more information. Our team is here to help you.
Premiums start at $5,000 and limits are available from $1,000,000.
Beacon Hill can help you round out coverage for your clients by packaging some of the additional products below. Writing these coverages with the same carrier adds efficiency, protects against potential coverage gaps, and helps generate the best possible pricing for your insured. Please let your Beacon Hill contact know if you have any questions.