Market alert for contractors and those that hire construction services: Over the last year Environmental Risk Managers has experienced a steady rise in the number of standard contractors around the country being required to have contractor’s pollution liability (cpl) insurance in order to perform their construction services. An abnormally large percentage of contractors are finding out they need cpl coverage when they try to collect their money at the end of a job. Client’s are holding money back until they see proof of cpl coverage in force. Environmental insurance carriers as a general rule will not backdate. If mold is required we are dealing with an entirely different issue.
If you are not in the practice of reviewing your contractor’s contracts for environmental insurance requirements prior to their bidding a job, offer this value added service as your insured’s professional risk manager. Besides a great value added service you will be amazed how much additional business you’ll write.
Back in the late 80’s when I got started in the insurance business we were working primarily with asbestos, lead and other remediation contractors. Most contracts in the beginning did not require cpl coverage because most attorneys did not know it existed. Once a few losses got in the press and attorney’s found out that cpl coverage existed, well a remediation contractor that did not have cpl coverage was hard pressed to find work.
Recently Wal-Mart has paid over $4,000,000 in penalties and fines for storm water run off from their construction sites. Wal-Mart does not do the construction, they sub this out. Wal-Mart now requires contractors working on their sites to have cpl coverage. I could name off company after company that is requiring cpl coverage for standard contractors so it is now the norm not the exception.
Generate more sales and add value by taking advantage of this coverage issue going on around the country.