A Contractor Pollution Liability (CPL) policy prevents gaps in coverage due to pollution-related exclusions on standard commercial general liability programs. This policy protects against both sudden and gradual pollution conditions caused by contracting operations, including completed operations, conducted by or on the behalf of the insured. CPL policies are available on a claims-made or occurrence coverage form as a practice policy or on a project-specific basis. A project-specific policy can be procured on behalf of the owner and cover all contractors and sub-contractors at all tiers.

Contractors Pollution Liability

Owner Controlled Insurance Programs

Project-Specific Contractors Pollution Liability – Owner-Controlled Insurance Policies, or CPL-OCIP (“Wrap-Up”) Policies, provide broad environmental risk exposure coverages for project owners, JV partners, investors, lenders, contractors and sub-contractors at all tiers of a construction project.

What is a CPL-OCIP?

Project-Specific CPL-OCIP Policies offer a streamlined and cost-effective solution to cover all parties associated with a construction project, protecting against gaps in coverage due to pollution-related exclusions on standard commercial general liability programs.

Rather than burden a project owner’s risk management or insurance administrator with ensuring that each individual contractor carry and maintain an acceptable CPL policy, a project owner should consider a CPL-OCIP to assure that adequate coverage is provided for all parties during the project and completed operations term, with a dedicated project limit, broad coverage terms, and centralized claims handling.

My contractor carries insurance. Why should I buy a CPL-OCIP?

  • Coverage for environmental damage resulting in cleanup costs, including restoration costs and emergency response costs

  • Coverage for third-party bodily injury and property damage claims, including loss of use, diminution in value and natural resource damages

  • Coverage waste disposal liability

  • Coverage for transportation pollution liability

  • Coverage for storage and staging areas away from the project site utilized in support of the covered project

  • Coverage for legal defense expense

CPL-OCIP Policy Coverages

  • Limits of liability up to $50M each pollution incident

  • Occurrence or Claims-made and reported policy form

  • Policy terms up to 15 years (combined project term and completed operations term)

  • Insured entities include project owner, contractors and subcontractors at all tiers, and project lenders

  • Defense costs available outside the policy limit

  • Broad pollutant definition includes mold (including mold as a result of EIFS), asbestos, lead-based paint, illicit abandonment at a project site and silt & sedimentation beyond the boundaries of a project site

  • Blanket waiver of subrogation where required by contract

  • Blanket additional insured status where required by contract for ongoing and completed operations

  • Rolling OCIP structure available to add additional projects completed during a specified enrollment period

CPL-OCIP Policy Benefits and Features

  • Construction Budget with Breakdown of Hard Costs

  • Project Contract between Owner and Prime Contractor

  • Project Description and Construction Timeline

CPL-OCIP Submission Requirements

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