How do you protect yourself from coverage gaps when the work you do or the products you sell are environmental in nature? Is your claim really property damage, is it environmental damage or is it contractor’s pollution? The best way to avoid coverage gaps is to purchase combined environmental policies that add many of the disparate coverage parts and also work to expand coverage to additional occurrence based environmental enhancements. These environmental products are typically written on an annual basis and are not subject to audit.
Combined environmental policies cover bodily injury, property damage and clean up/remediation related to pollution events and are designed to cover:
Additional Offsite exposures include:
There are two types of combined environmental products.
1. General Liability/Pollution Legal Liability (GL/PLL). The General Liability is also ISO or ISO similar. The Pollution Legal Liability is added to provide holistic coverage for a loss that triggers a pollution event on, at or under your site or that emanates away from your site. Some examples of manufacturing where a pollution incident occurs might be a chemical facility, a treatment storage and disposal facility, biofuel production, fertilizer manufacturers, paints and coating facilities and more. As the standard insurance marketplace coverages continue to constrict for certain classes of business, the appetite in the environmental casualty marketplace fills the coverage gap and provides solutions for ever growing classes of business.
The key benefit to these programs beyond just the combined coverages, is that coverages can be enhanced and often manuscripted to serve the unique features of your account. Among the coverages that can be added by endorsement are as follows.
2. General liability/Contractor’s Pollution Liability and Professional Liability (GL/CPL/PL). The General Liability is either ISO or ISO similar. The contractor’s pollution provides coverage for your work as defined by the same definition as under the general liability. Coverage for professional liability is typically related to the remediation professional. Contractors that fall into this category are typically remediation contractors for asbestos/lead; professional engineering firms who are doing surveys, environmental assessments, etc.; or hazardous waste haulers where extended coverages such as transportation play a key role.
An example account might be an asbestos remediation contractor who does some light demolition work and has a General Liability exposure for their day-to-day operations at a job site but is then responsible for assessing the contaminants in a building (professional) and then needs to remediate (Your work ).
Market capacity for these products remains strong as many of these facilities and contractors are well regulated and are often very profitable as a class of business. We continue to see markets enter this arena to grow market share. Typically, primary plus excess up to $25 million is available with most carriers.
RT Specialty’s National Environmental and Construction Professional Liability Practice can assist in evaluating your insured’s current environmental casualty program or in developing an optimal solution for your client that is not available in the standard casualty marketplace.
For more information on Environmental Casualty products, please contact your RT New Day consultant.