And, while some of these activities are regional, most companies operating in the energy industry span across the country. Here are some of the environmental coverages they often require:

General Liability/Contractors Pollution Liability
Combined General Liability and Contractors Pollution Liability policy that provides coverage for pollution claims arising from an insured’s covered and completed operations.

Products Pollution
Provides liability coverage for bodily injury and property damage to third parties arising out of a manufactured product. This would be especially important for blending/mixing facilities, companies that make solar panels, etc.

Transportation Pollution Liability
Coverage for insureds who need protection for pollution conditions caused by transportation. This coverage can also include loading/unloading should the insured’s cargo create a pollution condition. This would be important for haulers of any placard use, salt water disposal companies, etc.

Excess
Follow form Excess policies provide additional limits, following form over the underlying General Liability, Pollution, and any associated Professional, Employers, and Auto liability.

Although environmental liability insurance is not always required, the Gulf of Mexico oil spill is the perfect example of why it is crucial for energy companies to have adequate coverage. This is a great opportunity to contact your energy clients to make sure they have the right insurance program in place. For more information or to discuss a specific energy account, call us at 1-800-596-2156 or email us.

In today’s competitive insurance market, many carriers are emphasizing the highlights of their coverage form and adding enhancements to further broaden coverage.  For Contractors Pollution Liability (CPL), there are typically blanket endorsements that are now readily being included automatically. There are also a number of available coverage grants that can be added once the exposure is evaluated. To name a few:

• Blanket Additional Insured for Owners, Lessees or Contractors where required by written contract – including completed operations: broadly provides protection to the requiring Additional Insured for liabilities arising out of the ongoing and completed operations of the Named Insured.
• Blanket Waiver of Subrogation where required by written contract: the Carrier gives up or waives their right to subrogate, or attempt to collect or share in the responsibility of a loss for a requiring entity.
• Blanket Primary and Non-contributory where required by written contract: the Carrier is affirming that the Insured’s policy will pay first in the event of a claim (or be primary). Non-contributory means that not only will the Insured’s policy respond/pay first, but it will pay the claim (subject to limits) without the requiring entity having to contribute to the loss with their own insurance.
• Transportation Pollution Liability: applies to losses specifically caused by pollution conditions arising from transported cargo and the loading & unloading of that cargo when the vehicle is being used in the performance of Insured’s operations, first and third party carrier coverage available.
• Non-Owned Disposal Site Coverage: coverage for liability arising from the disposal of waste into a third party non-owned disposal facility that at the time of disposal is a licensed/permitted facility. Coverage is available on a scheduled locations basis or blanket basis.
• Restoration Costs: reasonable and necessary costs to restore/repair property damaged by a pollution condition resulting from the Insured’s operations to the condition of the property prior to the loss.
• Separate Defense Limits: The carrier will pay the costs incurred to defend the Insured for a claim; this will not erode the policy limits of liability, but be provided in addition to.
• Sudden / Accidental Site Pollution coverage for your Covered Locations: typically providing coverage for third party claims for pollution conditions migrating from the Insured’s location (locations scheduled, blanket coverage may be available).
• Incidental Professional Services Coverage: coverage for liability arising from opinions/recommendations made by the Insured about the covered operations that are incidental and necessary and for which no compensation is requested.

Your client is better protected with a CPL policy.  It is critical to compare coverage/carriers, in addition to price, when determining the best home for your pollution coverage.

Trade Contractors are in a uniquely challenging position. While their responsibilities are often narrowly defined in the scope of services, they are usually one part of a multi-part process. This means that any claims that arise from a site may be brought against any or all of the contractors who performed operations at the location. And if the claim alleges something that is excluded by the contractor’s CGL policy, defense may not be provided.

Specific job site exposures that different types of trades have:

• Disturbing or exacerbating existing pollutants: Many contractors move earth, excavate, demolish, or otherwise alter existing features of a property. If any of those contain hazardous substances (petroleum contaminated soil, asbestos containing building materials, etc.), the contractor can be held responsible even though he was never advised that he would be.
• Contamination caused by materials the contractor brings to the site, such as paints, cleaning solvents, fuels, lubricants, etc.
• Contamination caused by operations, such as cutting through a gas line, installing flashing around window incorrectly, installing piping improperly, failing to solder joints, roofing leaks, erosion at site causing offsite contamination, etc.
• Contamination for which the contractor is held responsible, such as operations of a subcontractor to the trade contractor and actions of a party delivering materials to the site for the contractor.
• In addition to job site exposures, Trade Contractors also have exposures at the premises they own. This property, where they store their equipment and supplies, is often the single largest equity investment they have. Pollution at that location could reduce its value tremendously, effectively wiping out the equity built up by the owners.
• The final exposure area to note is Over the Road Pollution. This is the exposure that vehicles have going from owned premises to job sites. The upset and overturn of a vehicle can cause significant contamination, even if only from small amounts of fuels or solvents they use in their everyday work.

There are coverages available to address all of these exposures:

Contractors Pollution Liability
Designed to protect the Insured for claims stemming from pollution conditions at, on, or emanating from a job site arising where they are performing their operations.

Premises Pollution Liability
Coverage designed to protect against losses arising from the scheduled premises, which in this case would be the contractor’s owned properties.

Over the Road Pollution (Transportation Pollution Liability) is of course, coverage for pollution events during transit.

All of these coverages are available for most trade contractors, and they are all affordable. Many can be purchased together in packages, or separately depending on the needs of the particular Insured. For the trade contractor faced with many exposures that are effectively out of their control, consideration of this type of coverage is very important. In the current softening market, enhancing your clients’ coverage can be done for little additional premium and will help secure your relationship going into the future.

Transportation Pollution Liability (TPL) provides coverage for this gap in coverage. It is available both in conjunction with a Contractors Pollution Liability (CPL) policy and on a stand alone basis. This coverage applies to losses specifically caused by pollution conditions arising from transported cargo when the vehicle is being used in the performance of the insured’s operations.

If you would like to learn more about TPL coverage, feel free to contact us at 1-800-596-2156 or marketing@b-h-a.com.