123735963_MMost states have “statutes of repose” — laws that stop a right of action after a specific period of time has passed.

Statutes of repose are laws that establish a fixed time period during which claims or lawsuits can be filed in relation to construction projects. Unlike statutes of limitations, which typically start from the date of the alleged wrongdoing, statutes of repose begin counting down after a specific event, such as the completion of the project or the delivery of the construction materials. These statutes aim to limit the liability of contractors and other parties involved in construction projects, providing them with a certain level of protection against claims that may arise years after the completion of a project. Contractors should be aware of and pay special attention to these statutes as they can impact their exposure to potential claims related to pollution liability, which may take longer to manifest and become evident. Understanding the timeframe allowed for claims under the statutes of repose is crucial for contractors to properly manage their insurance coverage and ensure they have adequate protection for any claims that may arise within the specified time limitations.

Statute specifics can vary widely depending on location, limitation periods, and what is covered. Contractors must pay special attention to statutes regarding completed projects. They can be held liable for claims made for bodily injury, property damage, clean-up, and defense costs as a result of pollution hazards. Contractors need a special policy to cover their unique pollution liability risks.

A contractor pollution liability insurance (CPL) is a policy designed to provide protection against these types of claims. Policies may cover specific projects or may provide “blanket protection” for all operations of a contractor who completes construction projects. This coverage includes “tail” coverage or the extended reporting period (ERP), the time when claims are allowed by statutes of repose.

A CPL policy provides protection to all types of contractors including general contractors, trade contractors, artisan contractors, and environmental contractors who handle clean-up of hazardous waste sites. Many project administrators require the contractor to show proof of CPL coverage before work can begin.

The CPL policy from C & S Specialty Underwriters covers environmental contractors (fire & water restoration, mold remediation, soil/groundwater remediation, lead/asbestos/PCB and radon mitigation) with revenues of $10 million or less and non-environmental contractors (street/road contractors, concrete, painters, general contractors, plumbers, HVAC/electrical contractors) with revenues of $25 million or less. Primary limits of up to $11 million per occurrence and $11 million aggregate are available. Coverage is available in all states.

We have insurance solutions to keep your contractor clients protected from pollution liability claims. Contact us for more information.