In today’s competitive insurance market, many carriers are emphasizing the highlights of their coverage form and adding enhancements to further broaden coverage. For Contractors Pollution Liability (CPL), there are typically blanket endorsements that are now readily being included automatically. There are also a number of available coverage grants that can be added once the exposure is evaluated. To name a few:

Blanket Additional Insured for Owners, Lessees or Contractors where required by written contract – including completed operations: broadly provides protection to the requiring Additional Insured for liabilities arising out of the ongoing and completed operations of the Named Insured.

Blanket Waiver of Subrogation where required by written contract: the Carrier gives up or waives their right to subrogate, or attempt to collect or share in the responsibility of a loss for a requiring entity.

Blanket Primary and Non-contributory where required by written contract: the Carrier is affirming that the Insured’s policy will pay first in the event of a claim (or be primary). Non-contributory means that not only will the Insured’s policy respond/pay first, but it will pay the claim (subject to limits) without the requiring entity having to contribute to the loss with their own insurance.

Transportation Pollution Liability: applies to losses specifically caused by pollution conditions arising from transported cargo and the loading & unloading of that cargo when the vehicle is being used in the performance of Insured’s operations, first and third party carrier coverage available.

Non-Owned Disposal Site Coverage: coverage for liability arising from the disposal of waste into a third party non-owned disposal facility that at the time of disposal is a licensed/permitted facility. Coverage is available on a scheduled locations basis or blanket basis.

Restoration Costs: reasonable and necessary costs to restore/repair property damaged by a pollution condition resulting from the Insured’s operations to the condition of the property prior to the loss.

Separate Defense Limits: The carrier will pay the costs incurred to defend the Insured for a claim; this will not erode the policy limits of liability, but be provided in addition to.

Sudden / Accidental Site Pollution coverage for your Covered Locations: typically providing coverage for third party claims for pollution conditions migrating from the Insured’s location (locations scheduled, blanket coverage may be available).

Incidental Professional Services Coverage: coverage for liability arising from opinions/recommendations made by the Insured about the covered operations that are incidental and necessary and for which no compensation is requested.

Your client is better protected with a CPL policy. It is critical to compare coverage/carriers, in addition to price, when determining the best home for your pollution coverage. The proper broker will have information on all the newest environmental and insurance laws, so that your insureds will be assured the very best coverage. The right broker will also be able to offer competitive pricing and a certain amount of expertise so that you can be sure that even using a third party broker will provide what your client needs the most – proper coverage and the ultimate protection.

Author Bio: Jane Saliba is an Underwriter at Beacon Hill Associates, Inc., a wholesale insurance broker and program administrator, specializing in the placement of environmental insurance and other specialty coverages such as contractors pollution liability insurance and energy related coverages for agents nationwide. Beacon Hill Associates, Inc. can be found online at: B-H-A.com .

Category: Finances
Keywords: CPL endorsements, environmental insurance, additional coverage, incidental professional services