Contractor's protective indemnity for pollution events?  That's right.  XL Environmental just released a policy enhancement to their Contractors Pollution Liability (CPL) and Combined CPL/professional liability programs whereby they are providing coverage to the insured (general contractor for example) for damages incurred from pollution conditions resulting from the work of subcontractors. 

The coverage, which is offered via endorsement to the standard CPL, indemnifies the insured for a "subcontractor loss" in excess of "subcontractors' Insurance" (which can be CPL, Commercial General Liability (CGL) or business auto - when they are applicable to pollution claims) resulting from a pollution condition at a "job site."  The insured must make a "claim" (which can simply be a written demand) against the subcontractor to trigger the policy.  It can be offered on either a claims made or occurrence basis. 

In a world where CPL is still not as prevalent as it should be, this may be a solid consideration for many contractors that could be faced with situations where their subcontractors don't have any type of pollution coverage but yet they cause a pollution event.  General contractors may have greater flexibility in how they finance a loss, via their CPL insurance program, by allowing them to address or remedy pollution conditions at a project site without having the owner take action against them. 

For more information about XL Environmental's contractor's protective indemnity enhancement or any of the other products from the quality carriers that offer similar solutions, contact your New Day underwriter at 609.298.3516.