A standard automobile insurance policy carries a pollution exclusion that leaves an insured exposed to unnecessary risk, including costly cleanup expenses. A CA 99 48 endorsement modifies the insurance provided under the Business Auto Coverage, Motor Carrier Coverage, and Truckers Coverage forms to cover cleanup costs; however, coverage for these costs can only be triggered by an accident, upset or overturn of a covered auto. In addition, there are other gaps in coverage that expose an insured to liability not covered with a CA 99 48 endorsement. Transportation Pollution Liability (TPL) insurance can fill these gaps, and when added in conjunction with the CA 99 48 endorsement, maximizes the insured’s financial risk transfer.
An endorsement available to automobile policies to broaden coverage for pollution liability.
An insurance policy that can be put in place to supplement the auto policy to fill in gaps left by the CA 9948 endorsement.
This allows you to recover costs associated with correcting design errors discovered during construction before they escalate into a formal third-party claim.
Provides first-party indemnity for losses caused by the negligence of subcontracted professionals, such as architects or engineers, ensuring you aren’t left holding the bill if their limits are insufficient.
Monoline forms can often be tailored for certain classes of business to explicitly cover the professional error itself, filling gaps where combined forms often fall short.
Large project owners and General Contractors (GCs) often have disparate requirements for different types of work. A combined form may meet the professional requirements but fail to meet the specific affirmative pollution wording required for a specific project, putting subcontractors out of compliance and project owners/GCs at risk.
All Commercial General Liability (CGL) policies include some version of the total pollution exclusion. Sometimes insurers offer limited coverage through endorsements, but this coverage is usually insufficient for pollution risks.
A Commercial Pollution Liability (CPL) policy can offer more comprehensive coverage to address broader pollution-related needs that typical GL pollution endorsements often cannot.
Legionella, mold, asbestos and lead are pollutants that can result in costly claims.
YES: Coverage regularly included for these as specifically named pollutants.
Generally Not Covered: These pollutants may even be specifically excluded.
Contractors transport equipment, chemicals, solvents, materials and waste to and from jobsites.
YES: Coverage regularly included for 1st and 3rd party TPL along with loading and unloading.
Generally Not Covered: The CA 99 48 pollution endorsement available on the auto has limitations as well.
In the event of a pollution condition at a disposal facility all contributors of waste are potentially responsible parties.
YES: Coverage regularly included for non-owned disposal site liability.
Generally Not Covered: Could even be specifically excluded.
Contracts often include requirements for completed operations or an extended reporting period (ERP).
YES: Coverage can be included for ERP or completed ops.
Generally Not Covered: Coverage may not be able to meet contract requirements.
Contractors can be responsible for hazardous waste dumped at jobsites by unknown parties.
YES: Coverage can be included for illicit abandonment.
Generally Not Covered
Insureds may incur costs from immediately responding to a pollution condition that poses an imminent threat.
YES: Can cover reimbursement of these costs incurred by the insured provided the incident would be covered by the policy.
Generally Not Covered
Cleanup and monitoring of pollution incidents are often mandated by the government, and the cost can be significant.
YES: Coverage regularly includes the cost of cleanup and monitoring, which can include: testing, assessment, removal, disposal, etc.
Generally Not Covered: Coverage may only include BI and PD, or offer limited onsite cleanup.
Pollution incidents may contaminate wildlife, fish and wetlands that will require restoration.
YES: Coverage regularly includes natural resource damage.
Generally Not Covered
Expenses incurred to restore, repair and/or replace property to its original state prior to being damaged by remediation activities.
YES: Coverage can be included for these costs.
Generally Not Covered
Contractors could incur civil fines and penalties and punitive damages in relation to a pollution condition.
YES: Coverage may be available where allowable by law.
Generally Not Covered: Can even be specifically excluded.
Work may be performed by the contractor and/or on their behalf (vicarious liability from work done by subcontractors).
CPL: “Your Work” definitions often include work performed by the contractor or on their behalf.
CGL: Coverage is often limited to work performed by the insured.
The release of pollutants may be sudden or it may go undetected, migrate and grow gradually over time.
CPL: Coverage regularly included for sudden and accidental as well as gradual pollution incidents.
CGL: Coverage often limited to sudden and accidental (pollution incident must occur and be reported within the specified number of days, often 10 days or less).
Pollution claims are often high severity claims. The lower the limits of insurance, the greater the risk of being underinsured.
CPL: Pollution policy limits generally start at $1M and up. Higher limits are available as needed.
CGL: Limits are generally offered at $1M or less and are shared with the CGL.
Environmental claims are complex and involve local, state and federal laws. Each jurisdiction has a unique regulatory position requiring environmental counsel.
CPL: Pollution claims are typically handled by an environmental claims adjuster and environmental counsel.
CGL: Most likely will be handled by the CGL claims adjuster and counsel.
Actual coverage will be provided in accordance with the endorsements and policy issued. Please refer to the specific CGL limited pollution endorsement and CPL policy form for verification.