Pollution Legal Liability (PLL) is intended to close the gap in the Commercial General Liability policy created by the pollution exclusion. PLL is Claims-Made coverage which provides coverage for pollution conditions or events on, at, under or emanating from a covered location or locations. Coverage is afforded for third-party bodily injury, property damage, cleanup costs and defense costs. Coverage is generally written for the construction term. Unlike an Owner Controlled Insurance Program (OCIP) that extends coverage after construction is complete, the PLL policy only provides coverage for incidents that took place during construction. Once a project is completed, if Pollution is still a concern the Property Owner can elect to purchase coverage.
Every PLL policy is unique and should be carefully reviewed for appropriate coverage. A given policy may include:
- New pollution conditions
- Existing pollution conditions
- On site cleanup coverage
- Transportation coverage
- Non-Owned Disposal Site (NODS) coverage
- Business interruption
- Builders soft cost
- Mold liability coverage
- Asbestos and Lead-based Paint
Coverage can also be extended to known environmental conditions which exist at a site. Coverage is based on the type and extent of the site’s existing contamination. They can also include liability caused by mold and costs of mold cleanup. In a nutshell a properly written Pollution Legal Liability Policy can reduce much of the uncertainty associated with environmental liability.
Every development has an environmental exposure although some are more exposed than others. Projects being developed on previously occupied sites especially those that may have had a dry cleaner, gas station or parking lots are good examples of properties that are more at risk. Either way an indication or a quote for Pollution Legal Liability should be obtained and evaluated.