Schaumburg, Ill. — Zurich, a commercial property/casualty insurance provider in North America and abroad, reports that its North America Commercial Construction business unit launched a new product that offers professional and environmental liability coverage (PEC) combining errors and omissions coverage with contractor’s pollution liability. Coverage elements include liability arising out of acts, errors or omission, as well as pollution events arising from an insured contractor’s services or operations.
“After listening to our customers express a need for professional and environmental liability insurance, we made this coverage more readily available,” says Seth Hausman, SVP for Zurich North America Commercial Construction, Schaumburg, Ill.
Zurich’s new coverage is tailored to meet the needs of mid-sized construction customers, including general contractors, construction managers, design-build firms, heavy and highway contractors and artisan/specialty trade contractors.
“Our standard Contractor’s Protective Professional Indemnity product is still available to large customers and those who need more comprehensive coverage,” Hausman says. “However, many mid-sized contractors require a more standard coverage form, which is now available through this PEC coverage approach.”
The policy is comprised of two coverage parts:
Professional liability coverage
- Provides coverage for third-party claims filed against a contractor because of negligent delivery of professional services, including construction management, design or design assist related services
- Coverage is provided on a claims-made basis with the costs of legal defense eroding the limits of liability
Pollution liability coverage
- Contractor’s pollution liability (CPL) available on a claims-made or occurrence type basis, providing coverage for loss as a result of pollution events caused by covered operations performed by or on behalf of the insured contractor at its project sites
- Mediation credit for up to 50% of the policy deductible (subject to a maximum credit of $25,000) for any claim resolved by mediation at Zurich’s request
- Allowable insured expenses of $250 per day in addition to the policy limit for attending legal proceedings at Zurich’s request, subject to a $5,000 maximum
Policies are typically written on a practice/annual basis. Project-specific policies also are available for purchasers of an annual corporate program. Project-specific coverages support the duration of a construction project with automatic extended reporting periods available.
Source: Zurich North America
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