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Knowledge Center Items Closing the Gap: Contractors Pollution Liability Insurance

Closing the Gap: Contractors Pollution Liability Insurance

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All types of contractors – from remedial contractors to specialty tradesmen who perform roofing, HVAC, plumbing, drywall, and street and roadwork to dozens of other classes of business – have exposures that could require Contractors Pollution Liability insurance.

Designed to close the gap for pollution exposures found in a General Liability policy, Contractors Pollution Liability covers third-party bodily injury and property damage as well as remediation costs associated with a covered pollution event at an insured job site. Contractors Pollution Liability can be purchased along with a General Liability policy or as a monoline policy. 

Why Contractors Pollution Liability Insurance Is So Important

Contractors Pollution Liability insurance covers any holes for pollution exposures found in a General Liability policy. An ISO General Liability policy either provides very limited coverage or, more frequently than not, includes a “total pollution exclusion” endorsement that effectively removes any coverage for pollution-related damages and expenses.

Wirtz recommends that, when speaking to clients about the need for Contractors Pollution Liability insurance, agents and brokers share some real-life claims examples. “Clients will see how costly a claim is, including the legal fees to defend a case.”

Agents and brokers can find a number of claims examples here.  These scenarios illustrate various pollution-related risks that landed different types of contractors in litigation resulting in significant defense costs and payouts.

Making Things Easy

“Our monoline Contractors Pollution Liability policy can be purchased on our eCommerce platform,” says Sarah Wirtz, RPS Area Senior Vice President/Casualty Manager, National Environmental Practice Leader/Casualty, “which is a tremendous benefit right now with so many agents and brokers working remotely during this unprecedented time. Agents and brokers are able to get their clients quotes quickly for renewals and new submissions. If a client is going on a job and needs coverage, a broker can get the insured a quote in minutes.”

RPS’s Contractors Pollution Liability insurance is available on a practice or project-specific basis. Practice-based policies insure all defined covered operations taking place during the policy term and are more cost-effective than project-specific policies.

The monoline Contractors Pollution Liability policy can be purchased via the portal for contractors who have less than $50 million in revenue with liability limits of up to $5 million. For other clients, RPS offers policy solutions outside the portal via traditional channels.

“RPS’s product is unique in that it offers several coverage enhancements,” explains Wirtz, “including occurrence wording, coverage for transportation Pollution Liability, mold coverage, completed operations and crisis management. It’s important to ensure the policy is written with the proper limits and policy terms and defines the scope of coverage depending on the work being performed.”

Agents and brokers can access the RPS e-Commerce platform here to obtain quotes for Contractors Pollution Liability coverage for new business and renewals.

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