Contractors’ pollution liability (CPL) protects contractors during individual projects or as a blanket program, offering third-party coverage for bodily injury, property damage, defense, cleanup, and related defense costs due to pollution conditions from a contractor’s operations. You may also be able to secure a separate first-party coverage CPL policy. CPL has become vital environmental loss protection for just about everyone in the contracting industry. Contractors are motivated to purchase CPL based on contractual requirements, asset protection, and/or loss events. Contractual requirements have always been and continue to be the main reason to secure protection. However, an increasing number of contractors are purchasing CPL today as essential asset protection. Going forward, CPL claims are expected to rise, with small claims trending up. The CPL will likely continue to expand in the scope of coverage.
Coverage Considerations
Common components of a CPL plan:
Microbial Matter
Mold coverage is likely offered as part of the overall CPL program. Depending on the specific work/project types conducted, it may be handled as an occurrence or claims-made basis. It is crucial to ensure this component provides coverage for mold, fungi, mildew, bacterial and viral matter.
Non-owned Disposal Sites (NODS)
NODS coverage has become increasingly popular over the past few years, with insurers providing the protection on a blanket basis with little to no additional charge. This coverage includes the insured’s legal responsibility of disposing of waste material.
Naturally Occurring Hazardous Substances (NOHS)
Asbestos, mercury, silica, arsenic, radon, and pyrite have been topics of concern because an increasing number of contractors have been involved in situations resulting in lawsuits where they disturbed one of these materials. NOHS’s are a common exclusion so check to see if a separate endorsement is needed.
Welding Fumes (Manganism)
Manganism is similar to Parkinson’s disease due to inhaling toxic levels of manganese, causing irreversible damage to the central nervous system. Those exposed to this for extended periods of time in their work can develop mental and emotional distress and unbalanced body movements. Exposure to high levels of airborne manganese, such as pesticide application. From an insurance perspective, a CPL policy may be the policy you need to protect yourself against this exposure, or it may be structured as an added benefit to provide coverage for pollution-related third-party-over action claims. Speak to your Augusta construction insurance agent to understand how they can handle these claims.
About Provident Protection Plus
At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.
Social title: The Components of Contractors & Pollution Liability
Social description: Those in the contracting industry must be aware of their unique exposures and have proper coverage in place to protect their business. Learn more about CPL policies here.