Most states have “statutes of repose” which are laws that stop a right of action after a specific period of time has passed. Statutes of repose regulations are specific for construction projects. What this means is that claims are prohibited for construction defects of completed projects after a certain number of years. 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.
Contractors 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.