ERMI has seen a tremendous rise in the number of construction projects requiring Contractors Pollution Liability (CPL) insurance.<\/p>\n
For larger construction projects requiring CPL coverage, we feel the best CPL risk transfer strategy is for the project owner to purchase an Owner Controlled Contractors Pollution Liability (OCCPL) policy versus individual contractors purchasing CPL policies.<\/p>\n
With OCCPL the owner negotiates the coverage and premium that best meets their project needs. The project owner will be the first named insured and will have dedicated policy limits for their project. The first named insured is the only one that can cancel the policy. Additional insured\u2019s on the policy will be the general contractor\/s and subs working on the project.<\/p>\n
Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contracting services. Most policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, off-site disposal coverage\u2026.<\/p>\n
Another advantage in executing an OCCPL strategy, it will lower the cost of the construction project.<\/p>\n
Example of OCCPL cost advantage vs. individual contractors purchasing CPL coverage<\/strong> Premium for OCCPL: 40,000 X $1.00 = $40,000<\/p>\n CPL cost for individual policies:<\/p>\n The general contractor will have to purchase a policy for the cost of the whole project. We will then assume for this example the other 19 construction companies will be at minimum premium ($2,500).<\/p>\n General Contractor CPL Premium:\u00a0$40,000<\/p>\n 19 subcontractors X $2,500:\u00a0$47,500<\/p>\n Total Individual CPL Premium:\u00a0$87,500<\/p>\n OOCPL Premium:\u00a0$40,000<\/p>\n Individual CPL Premium:\u00a0$87,500<\/p>\n OCCPL Savings:\u00a0$47,500<\/strong><\/p>\n With individual CPL policies you are assuming:<\/strong><\/p>\n ERMI Strategy #2: How to pay for the OCCPL insurance?<\/strong><\/p>\n OCCPL supports and strengthens the value of any construction project while reducing <\/span> <\/strong><\/span><\/strong><\/p>\n <\/p>\n potential exposure for the loaning institution. Pointing this fact out to your loaning <\/span><\/p>\n <\/strong> <\/strong><\/span><\/p>\n <\/p>\n institution allows you to negotiate a more favorable loan package than projects not <\/span><\/p>\n <\/strong> <\/strong><\/span><\/p>\n <\/p>\n executing the OCCPL strategy. The savings in the loan package more times than not <\/span><\/p>\n <\/strong> <\/strong><\/span><\/p>\n <\/p>\n pays for the cost of the OCCPL insurance.<\/span><\/p>\n <\/strong><\/p>\n Executing these strategies will drive your growth and profits.<\/span><\/p>\n <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" ERMI has seen a tremendous rise in the number of construction projects requiring Contractors Pollution Liability (CPL) insurance. For larger construction projects requiring CPL coverage, we feel the best CPL risk transfer strategy is for the project owner to purchase an Owner Controlled Contractors Pollution Liability (OCCPL) policy versus individual contractors purchasing CPL policies. With… Continue reading Contractors Pollution Liability (CPL) insurance.<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-331","post","type-post","status-publish","format-standard","hentry","category-risk","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/comments?post=331"}],"version-history":[{"count":0,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/331\/revisions"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nJob: Build new commercial office building
\nCost: $40,000,000
\nNumber of construction companies: 20
\nContractors Pollution Liability (CPL) rate: $1.00 per $1,000 of construction costs
\nCPL minimum premium: $2,500
\nCPL policy limits: $1,000,000\/$1,000,000
\nDeductible \/ SIR: $10,000<\/p>\n\n