If you are an environmental professional, you know all about the distinctive risk exposures. Because of them, insurance companies offer specialized coverage, tailor-made to the industry – and to the property owner and money lender that finances homes and commercial buildings and properties. This quick summary of the related forms of coverage was compiled in order to give related parties an easy-to-read glossary on the matter.
Insurance for the environmental professional:
• Environmental Consultants Errors and Omissions Coverage
This insurance coverage protects the environmental consultant from lawsuits related to alleged faulty guidance and instruction that lead to economic damages. Coverage for attorney fees is also included in the benefits of this type of professional liability policy.
• Environmental Contractor Bonds
Contractors that clean out pollution and contamination can purchase a bid and performance bond through an underwriter that provides specialty forms of indemnity to enhance industry- related liability coverage.
• Environmental Impairment Liability Coverage
Environmental impairment liability insurance is meant to cover that which is excluded for the professional in his or her commercial general liability form or policy. This coverage can be purchased from a specialty insurance company and includes compensation for damages suffered on account of environmental impairment and clean-up expenditures. It is important to review current commercial liability coverage to ascertain that is no overlapping, as well as to make sure there are no gaps in protective coverage, should the commercial liability policy have absolute pollution exclusion in the form.
• Environmental Remediation Contractors Coverage
Environmental remediation contractors are relied on for contamination clean-up of properties. Related liability risks incorporate: insufficient or uncompleted remediation, spreading of polluted soil during the remediation or the excavation, atmospheric emissions of the aquifers, breakup of underground pipelines or utilities, spills or leakage from the contractor’s tanks, mixing of incompatible material or waste that result in fire, explosion, the emission of hazardous vapor and wrongly installed tanks.
Insurance for the real estate buyer and mortgage lender:
• Environmental Site Assessment Coverage
This type of assessment is really an inspection service that an independent engineering company, approved by the underwriter, provides. The environmental site assessment should accompany the review and application for a lenders environmental cost or property transfer liability insurance policy. Both the real estate buyer and lender need this insurance to protect them from Superfund-like liabilities that may come from contamination on a property that was not discovered prior to its sale. This coverage can protect the insured form unanticipated costs related to the clean-up of contamination discovered following the purchase.
For a more in-depth discussion about environmental insurance, speak to an independent insurance professional.