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INSURANCE

BY BERNARD K. QUINLAN, CPCU, CIC, CRM

Purchasing Contractors’ Pollution Liability Coverage

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nderwriters of commercial general liability (CGL) and umbrella liability insurance for contractors have limited or totally eliminated insurance coverage for bodily injury or property damage arising from the “discharge, dispersal, seepage, migration, release or escape of pollutants.” Additionally, these policies do not provide coverage for costs associated with Bernie Quinlan is a principal with Sullivan Group in Needham, Mass. He can be reached at (781) 514-1331 or bquinlan@sullivangroup.com.

Pavilion and Treat-Proof ® is your solution for moisture control Treat-Proof ® is an integral moisture barrier (waterproofing) solution for all sub-floor concrete applications. It prevents water and other harmful agents from entering or moving through your concrete. Treat-Proof ® is the most economical solution you can use on wet sub-floors because it is only applied once and lasts for the life of the concrete. It is safe, cost effective, easy to apply and completely non-toxic, making it perfect for projects requiring a fast track system that allows permanent results and early site access with minimal site disruption. All Pavilion project managers and installers are fully certified in the use of Treat-Proof ® and ready to help solve your moisture problems.

Pavilion Floors 90 Commerce Way Woburn, MA 01801 Ph: 781.933.8500 Fx: 781.932.8844 E: info@pavilionfloors.com www.pavilionfloors.com

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requests or demands by a governmental agency to “test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants.” “Pollutants” are defined as “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.” To eliminate any gray areas that might be interpreted in favor of the insured contractor, exclusions for fungi or bacteria, silica, and asbestos are typically endorsed to your policy! The contractor has several options to address the significant financial loss exposure presented by these policy exclusions/limitations: • Convince your underwriter to amend the CGL and umbrella policies to provide pollution coverage. Highly unlikely. • Retain the risk (self-insure). This is probably not a good option for most contractors. • Contractually transfer the risk to the owner or GC. Good luck! • Transfer the risk to an insurance company through the purchase of contractors pollution liability (CPL) insurance. The contractor who carries pollution liability insurance enjoys the following benefits: • Broad insurance coverage and limits distinguish a contractor from competitors. Having a CPL policy may help you secure work. • Some projects require CPL coverage as a prerequisite to bid. You may find that purchasing projectspecific insurance (which is available) is as expensive, or almost as

Profile for The Warren Group

The Professional Contractor Winter 2011  

In this issue of The Professional Contractor, the housing recovery is going slowly, but some sectors are coming back; Projects of the Year E...

The Professional Contractor Winter 2011  

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