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Pitfalls of General Liability Insurance

With each new year, it seems as if the landscape for the construction industry becomes increasingly complicated. Knowing this, Starke Agency hosted a Contractual Risk Transfer Lunch and Learn to clear up any confusion our clients may have about this topic.

Several questions were asked by attendees , specifically regarding insurance coverages and risk management. Below, we have summarized the two insurance coverages that were discussed at the luncheon by CNA Branch Underwriting Director, Andrew Coleman.

1. Pollution: Pollution/mold is generally excluded under the GL policies and some E&O policies. If it is determined that the pollutant or damage originated because of an error made by the contractor, he or she could be held liable for any damages that may occur.


• Pollution claims, including cost for government-mandated clean-up
• Proactive coverage for mold
• Punitive damages resulting from pollution liability
• Transportation pollution liability and non-owned site disposal
• Pollution incident created by the loading or unloading of automobiles
• Protection for the generation, transportation, storage or disposal of pollutants

2. Contractors Professional Liability: This specialized coverage was developed to address contractors liability for design errors or omissions. One of the most significant challenges faced by risk managers is identifying and managing risk when design and engineering responsibilities are shares among many project participants.


• Covers the insured’s faulty workmanship
• Covers negligent errors or omissions by contractors or on contractors’ behalf in the design of their work, including design as a stand-alone deliverable
• Covers the use of defective materials or products

For more information about Pollution or Contractors Professional Liability, please contact a Starke Agency Risk Manager, or fill out one of our free, no obligation quote forms.