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| Types of Pollution and Environmental Liability |
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The most common type of environmental pollution and environmental liability insurance is Pollution Legal Liability (PLL) and Contractors Pollution Liability (CPL). PLL, which is for real estate owners and operators and CPL, which is for contractors, can be supplemented with Remediation Cost Cap (or Stop Loss) policies.
Real estate owners and operators need real estate environmental liability coverage (or should this be PLL?) because it covers bodily injury and third-party property damages from contamination at or from a site. Specific policies can vary and be modified to insure business income exposures, development, transportation and “soft costs” caused by contamination.
Pollution Legal Liability insurance is designed to provide coverage for any unknown pollutants discovered during subsurface investigations, onsite operations and real estate transactions. Depending on the policy, PLL can provide coverage for cleanup costs, third-party claims, property damage and business interruption for unknown pre-existing and future pollution conditions.
Contractors also need coverage to helps protect their businesses from a wide range of environmental risks associated with construction and ongoing job site operations. Called Contractors Pollution Liability (CPL), it generally pays for third-party claims of bodily injury, property damage, cleanup expenses and other exposures. Contractors can purchase coverage against pollution risks, including off-site transportation and exposures at non-owned locations.
Contractors can purchase coverage against pollution risks, including off-site transportation and exposures at non-owned locations. Insurance can be obtained for multiple years, for completed operations, and on a per-project or multiple site occurrence basis.
Both owner/operators and contractors also benefit from Cleanup Cost Cap/Remediation Stop-Loss coverage. It provides cost-overrun (or excess) coverage for known significant contamination with cost estimates exceeding of $2 million for costs associated with finding new contamination during a cleanup to design negligence.
Fennimore also offers general liability (GL) coverage for real estate owners and operators and contractors.
Besides general liability, Contractors Pollution Liability and Cleanup Cost Cap/Remediation Stop-Loss coverage, contractors should also have Professional Liability coverage because it pays for claims, including pollution coverage, related to the negligent acts, errors or omissions of the insured. This coverage can be written under one policy or under separate policies on either a claims made or occurrence basis. |
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