Construction > Cleanup and Liability Insurance for Premises Pollution


Cleanup and Liability Insurance for Premises Pollution 


Premises owners or operators may be subject to a wide range of pollution exposures which, in addition to potentially shutting down the premises, could also result in financial loss due to cleanup costs and/or third party liabilities. ENCON's Cleanup and Liability Insurance for Premises Pollution policy provides coverage for third party bodily injury and property damage resulting from Pollution Conditions on, under or emanating from a Covered Location. The policy also provides coverage for cleanup costs resulting from Pollution Conditions on or under Covered Locations.

Eligibility

The following provides an example of those eligible for Cleanup and Liability Insurance for Premises Pollution:

  • Hospitals
  • Municipalities
  • Waste storage facilities
  • Universities and schools
  • Golf courses
  • Manufacturers
  • Various commercial occupancies 

 

Coverage Details
  • Policy Form – The insurance is written on a claims-made basis
  • There are options for two levels of coverage:
      • Coverage for Gradual Pollution Conditions (includes Sudden Pollution Event)
        • The Notice Requirements stipulate that the Named Insured shall give notice as soon as practicable during the Policy Period or Extended Reporting Period as soon as the Named Insured becomes aware of a Claim or Pollution Condition
        • There is a Basic Extended Reporting Period, which provides a 30-day automatic extended reporting period at no cost, if the policy is cancelled or non-renewed. A 12 or 24-month Optional Supplemental Extended Reporting Period is available for an additional cost
  • Coverage for Sudden Pollution Events (insures only for sudden and accidental pollution events that commence during the policy period and are detected and reported to ENCON within strict time limitation periods)
      • A Sudden Pollution Event is a Pollution Condition that is detected within 120 hours of commencement and reported within 120 hours of detection (an option for 240 hours is also available)
      • If there is a Sudden Pollution Event, Third Party Claims may not arise until some time later; therefore, when the Insured reports a Sudden Pollution Event, Third Party Claims arising therefrom can be reported for up to two years past termination of the policy
  • Capacity – Limits up to $10,000,000 each incident/aggregate
  • Minimum Deductible – $5,000
  • Minimum premium (Gradual Pollution Conditions form) –$4,000
  • Minimum premium (Sudden Pollution Events form) – $3,000
  • Territory – Coverage for premises located in Canada

 

Policy Features
  • On-site cleanup
  • On-site and off-site third party liability (bodily injury, property damage and cleanup costs) resulting from pollution conditions on, under or emanating from Covered Locations
  • $250,000 limit for Emergency Remediation costs (Gradual Pollution Conditions coverage only)
  • Incidental transit coverage is included
  • Internal expenses incurred by the insured can be recovered as part of a covered claim, if they are incurred in response to an emergency or pursuant to environmental laws that require immediate remediation
  • 60 day notice of cancellation; a notable exception exists for non-payment of premium, which is 15 days for policies governed by Quebec law and 10 days for policies in other provinces
  • Separation of Insureds: misrepresentation, concealment, breach of the policy terms or violation of a duty under the policy by one Named Insured shall not prejudice the interest of coverage of another Named Insured
  • The Other Insurance condition explains that the policy is primary
  • The definition of cleanup costs includes restoration costs

 

Submission Requirements