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Understanding Environmental Contractors Coverage

Environmental Contractors, Remediation Contractors, and those in Oil & Gas/Oilfield/Energy and Building Construction face unique risks due to their operations. A package policy combining commercial general liability (CGL), professional errors & omissions (E&O), and contractors pollution liability (CPL) is essential for these industries.

General Liability (CGL)

CGL is a fundamental coverage that protects businesses from third-party claims for bodily injury and property damage arising from premises, job site operations, products, completed operations, and advertising.

Unique Considerations for Environmental Contractors

Certificate of Insurance Requirements

In states like Texas and California, clients often require a Certificate of Insurance (COI) naming their company as "Additional Insured." This typically applies to core coverages: General Liability, Commercial Auto, and Workers Comp.

Environmental Liability Insurance

Environmental Liability insurance is a specialized policy that covers general liability, errors & omissions, and pollution liability for remediation costs stemming from covered events.

Who Needs Environmental Liability Insurance?

  • General contractors (commercial, residential, municipal, etc.)
  • Trade contractors (foundation, HVAC, paving, etc.)
  • Specialty contractors (marine, energy, oil & gas, pipeline, etc.)
  • Remediation contractors

Why Environmental Liability Insurance is Essential

  • Protects against liability and financial loss due to environmental incidents.
  • Can be tailored to specific needs, including entire project coverage.
  • Addresses pollution conditions arising from past or present operations.

Typical Coverages

  • Cleanup of pollution conditions on and off-site
  • Pre-existing conditions (known and unknown)
  • Bodily Injury Property Damage (including Natural Resource Damage)
  • Business Interruption (optional)
  • Non-Owned Disposal and Transportation (optional)
  • Mold (optional)
  • Professional Errors & Omissions

Environmental Liability Insurance is crucial for contractors operating in industries with environmental risks. It provides protection against potential liabilities and financial losses. By understanding your specific needs and tailoring your coverage accordingly, you can mitigate risks and ensure your business is adequately protected.