What is Contractor’s Pollution Liability Insurance: A Complete Guide For Brokers
Contractors deal with a lot of problems throughout their day — delayed parts, tight schedules, and fussy clients, just to name a few.
However, one thing they shouldn’t have to worry about is whether they’ll lose their business over a pollution event. Unfortunately, without the right insurance, one incident of mold or historical pollution could potentially cost a contractor thousands of dollars they hadn’t budgeted for.
That’s why we’ve designed Contractor’s Pollution Insurance specifically for the needs of contractors across this country. In this guide, we’re diving deep into the nitty-gritty of Distinguished’s Contractor’s Pollution Liability Plus (CPL) and Contractor’s Professional and Pollution Liability Plus (CPPL). We’ll review what it covers, why it’s a big deal for contractors, and give you some tips on understanding its costs. With this info, you can confidently make sure your client is ready for anything construction might throw their way!
What is Contractor’s Pollution Insurance?
At Distinguished, we provide our Contractor’s Pollution Insurance through two main products. The first is Contractor’s Pollution Liability Plus (CPL), which offers liability & clean-up coverage for environmental risks not typically covered by a GL policy.
The second is our Contractor’s Professional and Pollution Liability Plus (CPPL), which covers environmental liability risks similar to the CPL as well as professional liability risks. This way, regardless of their situation, you can get contractor clients an appropriate contractor’s pollution policy that fits their needs.
What Does CPL and CPPL Cover?
At Distinguished, our Contractor’s Pollution Liability Plus includes:
- Occurrence Pollution Coverage: For claims from third parties regarding pollution events, including groundwater pollution, air pollution, and more.
- First-party Discovery Provision: Covers pollution conditions or indoor contaminant conditions discovered by the insured.
- Emergency Clean-up Costs: Provides coverage for immediate clean-up expenses.
- Mold and Legionella Coverage: Protection against claims related to mold matter and legionella.
- Subcontracted Services Indemnity: Covers pollution protective related loss from subcontracted services for indoor contaminants or pollution conditions.
- Business Interruption Provisions: Coverage for interruptions at owned sites and contingent coverage for interruptions at job locations.
- Facility Protection: Coverage for owned locations like equipment yards and other facilities.
- Non-owned Disposal Site & Transportation: Occurrence-based protection for disposal sites not owned by the insured and transportation.
- Specialized Litigation Provisions: Coverage for Bankruptcy Litigation, Disaster Management, Subpoena Expenses, and SIR credits for approved mediation.
- Legal Costs Beyond Limit: Additional coverage for legal expenses outside the limit.
When it comes to our Contractor’s Professional and Pollution Liability Plus, contractors get all of the coverages included above in CPL, plus:
- Professional Liability Coverage: Protects against actual or alleged acts, errors, or omissions from professional services.
- Professional Rectification Coverage: Indemnifies for rectification expense incurred to avoid or mitigate a claim for professional loss.
- Professional Protective Coverage: Indemnifies for professional protective loss arising from an act, error or omission with respect to the rendering of or failure to render design services.
- Legal Costs Provision: Addresses legal expenses arising from professional liabilities.
Have more questions about what is and isn’t covered by our CPL or CPPL policies? Feel free to contact our underwriters, and we can get back to you as soon as possible with any clarifications.
Why Do Contractors Need Pollution Insurance?
Traditionally, contractors got pollution insurance because of legal or contractual obligations. However, the need for Contractor’s Pollution Insurance is evolving. Here are just a few other reasons contractors might be interested in these kinds of policies:
- Growing Environmental Awareness: Clients emphasize green practices more than ever, which may encourage contractors to get CPL or CPPL insurance to show their own environmental commitment.
- More Green and Renewable Projects: The growth in green construction and renewable energy poses unique risks, requiring CPL or CPPL coverage tailored to these new realities.
- Advanced Project Delivery Approaches: Modern construction methods, like integrated delivery, have multi-party collaborations that raise liability risks. CPPL is vital to handle potential multi-party disputes and design issues.
- Adoption of New Technologies: Innovations like Building Information Modeling (BIM) present new challenges requiring CPPL coverage in case of a mishap that leads to pollution or professional error.
- Risk Management: With a growing focus on risk management, contractors are choosing comprehensive insurance options like CPL or CPPL to safeguard against financial and reputational damages.
When Should CPL or CPPL Be Purchased?
Contractors can purchase these coverages in one of two ways: on a per-project basis or through blanket coverage.
When purchased job-by-job, contractors benefit from custom limits and coverages based on the risks and contractual requirements of that particular work site.
An alternative is a blanket policy approach, which helps ensure coverage is in place for all the work performed during the policy period. For contractors that frequently work on multiple projects, this kind of coverage may be the better and more convenient option.
Ultimately, we are happy to help your clients regardless of which kind of policy they think works best for their situation, as we can offer coverage on a per-project or blanket basis.
How Much Does Contractor’s Pollution Insurance Cost?
Nailing down cost estimates for CPL and CPPL is not easy, as premiums will reflect a number of site and job-specific circumstances. This can include:
- Current activities at the specified location
- Past uses of the designated site
- Scope and volume of contracting tasks
- Nature of services rendered
- Previous loss records
- In-house vs. outsourced contracting work
- Coverage limits and deductible amounts
- Duration of policy coverage
- Specific policy exclusions
For clients curious about the potential costs of CPL and CPPL insurance, we can usually provide a bindable quote for them in under three days. Simply register your agency or brokerage and submit the appropriate application form to get started.
What Are The Benefits of Partnering With Distinguished For Contractor Clients?
When you partner with Distinguished for your Contractor’s Pollution Insurance needs, you get access to a lot more than just our policies and programs. You can also expect:
- Expertise: Our program includes seasoned underwriters with over 450 collective years in the underwriting, environmental, and construction sectors.
- Swift Submission Turnaround: Our team excels at quick turnaround times, so any submissions, endorsements, or queries should be answered ASAP.
- Tailored Solutions: We offer bespoke solutions, meeting unique project and contractual needs.
- Dedicated In-house Claims Team: Our experienced attorneys work in-house to efficiently handle claims specifically for this program, making it easier for you and your clients.
- 24/7 Emergency Support: In partnership with Cura, we ensure nationwide, round-the-clock spill emergency responses.
How to Get Started With Distinguished
Getting your clients access to our CPL and CPPL policies is a quick and easy process. First, register your agency with us so you can log in to our system. Once done, complete the appropriate application form and forward it to Doug Stepenosky at DStepenosky@distinguished.com.
- Environmental and Construction Professional Insurance Overview
- Owner’s Professional Protective Indemnity Plus
- Pollution Legal Liability Plus
- Follow Form Excess Liability
Distinguished CPL and CPPL FAQs
Who is the carrier for Distinguished’s Environmental and Construction Professional Insurance?
Distinguished’s coverage is provided by SiriusPoint, which holds an A- rating from AM Best and S&P.
What limits do you offer?
Our liability limit is set up to a maximum of $25,000,000 per incident and up to $25,000,000 in the aggregate.
How do I submit business?
Returning brokers can contact their favorite Distinguished Environmental and Construction Professional Underwriter.
What projects will you offer CPL and CPPL for?
We entertain projects in many industries. However, here is a non-exhaustive list of industries for you to reference:
About Distinguished Programs
Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Real Estate, Community Associations, Executive Lines, Inland Marine, Hotels, and Restaurants. Property and liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished Programs’ high-limit umbrella programs remain the clear choice in its specialty areas for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation from 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.