We have advised you in the past how important it is that you consider adding Pollution Coverage to your insurance program to protect your assets. Unfortunately, as the legal environment surrounding Pollution and Mold claims continues to worsen, it is our absolute belief that all companies, especially contractors, need to protect themselves against these exposures.
Please understand that almost all General Liability policies exclude coverage for pollution exposures, especially mold. Some of you may have Limited Pollution coverage attached to your General Liability policy, but as the name implies, coverage is limited and excludes mold, asbestos, etc. In addition, if pollution or the type of pollutant is excluded under the terms of the policy, the Insurance Companies have no duty to defend against any suit seeking such damages. Contractors Pollution Liability forms would provide coverage for pollution claims arising from the job site activities of the contractor or its subcontractors.
A Premises Pollution policy would extend coverage for a scheduled location, such as the one you operate from. If you own the property, such a policy would help protect the value of the asset. If leased, you will likely have responsibility under your lease agreement for any pollution conditions that may arise during your tenancy. If you purchase a Contractors Pollution Liability Policy, Premises Pollution coverage may also be available as an endorsement.
Insurance Industry Bulletins are continually citing examples of new types of claims relating to pollution incidents. For those of you who have not yet decided to purchase this coverage in spite of our recommendations, we strongly urge you to talk to your legal counsel to obtain their opinion on the potential impact an uncovered pollution claim could have on your business. We feel certain they will echo our concern.
Another coverage that you should consider is Professional Liability , which is also excluded from your General Liability policy. You may feel you do not have a professional exposure, but please be aware that a contractor’s exposure from Professional Liability goes beyond design-build projects. Take a look at the attached Contractor’s Check List to see if you need Professional Liability Insurance.
Please allow us to obtain a quotation to protect your business against these exposures. We strongly believe this is in your best interest. We feel the cost will be minor in relation to the expense of an uncovered claim where you would be obligated to pay not only the damages for which you are found responsible, but the defense costs as well.
Very truly yours,
DeSanctis Insurance Agency, Inc.