In recent years, there is a deeper understanding of events that cause pollution, not only for large companies, but businesses of all sizes. If you are a HVAC, plumber, electrician, or general contractor, you may think that you need not worry about being charged with polluting the environment. It is this form of thinking that has led to the biggest exposures in the industry.
What is Contractor Pollution Liability (CPL) coverage?
Contractor Pollution Liability (CPL) coverage is a contractor-based policy, offered on a claims-made or occurrence basis it provides third-party coverage for bodily injury, property damage, defense, cleanup, and related defense costs arising from contracting operations performed by or on behalf of the contractor. Most general liability policies have a total pollution exclusion for third-party bodily injury, property damage, defense, and cleanup costs. CPL insurance is distinct in that it is used to cover the gaps of other coverages.
Who needs CPL insurance?
Some of the classes of business that likely need to consider CPL insurance include but are not limited to:
- Trade contractors (electricians, HVAC professionals, plumbers)
- General construction contractors (construction managers, demolishers, commercial builders)
- Industrial cleaning/janitorial services
- Alternative energy organizations
- Facility restoration companies
- Oil and gas/pipeline companies
- Mold/lead abatement companies and professionals
- Hazard material remediation contractors and waste haulers
- Environmental engineers and inspectors
Other contractors may also find a need for a CPL policy if their duties include:
- Road paving and maintenance
- Sewer and utility maintenance
- Airport fueling
- Waste water treatment maintenance
- Aboveground and underground tank storage installation and removal
- Roofing and window replacement
What Types of Claims Does CPL Insurance Address?
Understanding CPL insurance can help contractors understand what situations can be remedied or mitigated. Some examples of covered exposures include:
- Hitting an underground pipeline
- Disturbing asbestos
- Sending unwanted storm water runoff to another property
- Polluting local water with contaminated runoff
- Events that cause for noxious fumes to fill workplace
No one plans on releasing a pollutant such as mold, bacteria, or asbestos while performing their normal operations but if you do run across a mishap, the cost could be huge. Don’t let a single mishap lead to the end of your contractor business. Protect yourself with pollution liability coverage. For further questions, contact Frank Schiliro at (732) 972-1771 ext. 1102.