Remediation

Six Environmental Insurance Coverages That You Should Know


Contractors Pollution Liability
Potential Policy Holders: Contractors and Consultants
Coverages: Covers third-party claims for bodily injury, property damage, and environmental damage resulting from pollution conditions caused by the performance of covered operations, both on-site and migrating from the job site; Onsite and offsite cleanup costs; Defense costs
Sample Premium: $5000
Limits: $1,000,000 to $100,000,000
Deductibles: $2,500 and up

Cost Cap Coverage
Potential Policy Holders: Property Owners, Developers, Municipalities, Contractors
Coverages:  Coverage available for clean-up costs that exceed the self-insured retention (up to the limit of liability); the self-insured retention (SIR) is the expected cost of clean-up Provides protection for clean-up cost overruns when actual contamination exceeds expectations;  May be underwritten for both pre-approved remediation plans and plans in progress; Coverage available for on and off-site clean-up; Protection against pollution conditions newly discovered during the implementation of the remediation plan
Sample Premium: 8 to 20% of the estimated cleanup costs
Limits: $1,000,000 to $25,000,000
Deductibles: The average is 20% of the estimated cleanup costs

Pollution Liability
Potential Policy Holders: Property Owners and others named to the policy (developers, investors, remedial contractors)
Coverages:  First party above & below ground sites;  Third party property adjacent to insured premises above & below ground for cleanup, bodily injury and property damage; Legal defense costs; Non- owned disposal site
Sample Premium: Average is $75,000 to $100,000
Limits: $1,000,000 to $150,000,000
Deductibles: The average is $100,000

Contractors and Engineers General Liability
Potential Policy Holders: Contractors and Engineers
Coverages: Covers claims for injury to others; Damage to property of others arising out of your business operations, whether the injury or damage occurs on your premises or at your job site; Injury or damage caused by the goods you've sold, for work you've performed, for offenses arising out of the advertising of your goods and services and for false arrest, libel, slander and wrongful eviction others.
Sample Premium: $10,000 minimum
Limits: $1,000,000 to $25,000,000
Deductibles: $2,500 to $10,000

Environmental Contractors and Engineers Professional Liability
Potential Policy Holders: All environmentally related consultants, contractors and engineers specializing in environmental and hazardous and toxic waste projects
Coverages: Damages (including pollution liability) from acts, errors or omissions in professional services; Events such as the failure of the consultant to detect contamination during a phase I or phase II audit, or negligent design of a remediation
Sample Premium: $5000
Limits: $1,000,000 to $100,000,000
Deductibles: $2500 and up

Commercial Auto
Potential Policy Holders: Companies with employees who drive company or personal cars on company business
Coverages: insures vehicles against theft and accidental damages; Comprehensive coverage protects owners in every type of car accident, whether they are at fault, involved in a clash with an uninsured motorist, or unable to obtain the other party's insurance information due to a hit and run; Liability for owned, non owned, and hired autos.
Sample Premium: Based on location
Limits: $500,000 minimum
Deductibles: $500 and up

Important Notes:

  • Your agent can tailor most of these insurance coverages specifically to your firm
  • Make sure you understand the policy coverage exclusions
  • Insurers may apply aggregate limits to policy limits
  • Premiums are listed as general guides. Insurers set their own premiums.
  • Coverages can be combined. For example, Errors and Omissions may be available as a package with Contractor's Pollution Liability