If you’re an environmental professional, you know all about the distinctive hazard exposures. Thanks to them, insurance companies offer specialized coverage, tailored to the industry, and the property owner and lender that finances homes, commercial buildings and properties. This brief summary of related coverage forms was compiled to provide related parties with an easy-to-read glossary on the subject.

Insurance for the environmental professional:

• Coverage of Errors and Omissions of Environmental Consultants
This insurance coverage protects the environmental consultant from lawsuits related to alleged faulty guidance and instructions that result in economic damages. Attorney’s fee coverage is also included in the benefits of this type of professional liability policy.

• Environmental Contractor Bonuses
Pollution and contamination cleanup contractors can purchase a bid-and-performance guarantee through an underwriter that provides special forms of indemnity to enhance industry-related liability coverage.

• Liability Coverage for Environmental Deterioration
The purpose of civil liability insurance for environmental deterioration is to cover what is excluded for the professional in its modality or commercial general liability policy. This coverage can be purchased through a specialized insurance company and includes compensation for damage suffered due to environmental deterioration and cleaning costs. It is important to review current commercial liability coverage to make sure it does not overlap, as well as to ensure there are no gaps in protective coverage, should the commercial liability policy have an absolute pollution exclusion on the form .

• Coverage of environmental remediation contractors
Environmental remediation contractors are engaged for cleanup of contamination from properties. Related liability risks include: insufficient or incomplete remediation, spreading of contaminated soil during remediation or excavation, air emissions from aquifers, rupture of underground pipelines or utilities, spills or leaks from contractor tanks, mixing of incompatible materials or waste that results in the event of fire, explosion, emission of dangerous vapors and improperly installed deposits.

Home Buyer and Mortgage Lender Insurance:

• Environmental Site Assessment Coverage
This type of assessment is actually an inspection service provided by an independent engineering company, approved by the underwriter. The environmental site assessment must accompany the review and application for a transfer of property or environmental cost liability insurance policy from the lender. Both the real estate buyer and the lender need this insurance to protect themselves from Superfund-like liabilities that may result from contamination of a property that was not discovered prior to its sale. This coverage may protect the insured from unforeseen costs associated with cleaning up contamination discovered after purchase.

For a more in-depth discussion on environmental insurance, speak with an independent insurance professional.