Contractors' Pollution Liability Application Punch List


WELCOME
We are excited to offer you a choice in pollution liability insurance carriers and the following advantages:
a $5,000 deductible (other carriers now have a $10,000 deductible or higher)
a minimum premium of $3,500 (other carriers now have a $5,000 minimum premium or higher)
If you are interested in obtaining a quote for your contractors' pollution liability policy please fax a completed application along with those items listed under the "punch list" to: Kari Tysdal-Nilles fax# (515)223-5056. We look forward to living up to our mission statement: "Protecting the assets and interests of those we serve."
  1. Complete, date and sign the Contractors' Pollution Liability Application
  2. Submit a resume on all "key" personnel (Owners and Project Supervisors) - they are wanting to see 4+ years of experience in either mold remediation, fire & water damage restoration or other "related" fields such as construction. Don't rule yourself out if you don't have that many years, call us to discuss.
  3. Submit your most recent annual income statement showing applicable gross sales. A current P&L will suffice. They use these to verify your gross sales.
  4. Five years of CGL (Commercial General Liability) loss runs. CPL (Contractors' Pollution Liability) loss runs for all years you have had the coverage. (If you are a new franchise you wouldn't have these and if you have been in business less than five years submit as many years as would apply.)
  5. Submit a copy of your expiring contractors' pollution liability policy declarations page. They need this to confirm your retroactive date.
The underwriting process begins when all items are received and takes approximately 10 working days to complete. Please allow more than this to ensure that you have plenty of time and do not find yourself without coverage.

Please feel free to call us toll free at 1-800-756-9094 if you have any questions whatsoever and we will gladly walk you through this application process.



Frequently Asked Questions:

Does the NECC pollution policy include coverage for mold?
Coverage is quoted for the named insured's work as a mold remediation and fire & water damage restoration contractor.

Does the NECC policy pick up coverage for prior acts?
Yes. Our policy will pick up coverage for prior acts, back to your current retroactive date, as we take the retroactive date from your expiring policy and match it. You will NOT need to purchase tail coverage from the expiring carrier or agent when we do this.

Why does the quote process take so long?
NECC has asked for two weeks to underwrite your contractors' pollution liability. This is due to the large number of submissions they are receiving. All of the submissions are sent to the same underwriter which is very advantageous to you to ensure you receive fair pricing.

Is Contractors' Pollution Liability Claims-Made?
Yes. It is all now reportedly claims-made. The NECC policy is claims-made as well.

How does Claims Made coverage work?
Claims-Made coverage is triggered by the actual filing date or receipt of the claim, in addition to the date the incident occurred. Any covered claim filed within the policy period is handled by that policy regardless of when the actual incident occurred subject to the retroactive date.

What is a Retroactive date?
The retroactive date is a specific date entered on the declarations page of the policy. It is the point in time, set at the inception of the claims-made policy, that should indicate when claims-made coverage first began. Any incident which occurred prior to the retroactive date is not covered under your claims-made policy. It is imperative to make sure the retroactive date is correct. That is why NECC asks for a copy of your expiring pollution liability policies declaration page.

Will my premium increase every year?
While there is no guaranteed answer, we can explain what your claims-made policy should do. A claims-made policy is picking up coverage for your current policy period plus any periods that are covered within the retroactive date. For example if your policy is effective 6/1/2003 but has a 6/1/2002 retroactive date then your policy is covering the current year plus one prior. The first year of a claims-made policy will show the retroactive date as the inception date of that policy and will be the least expensive year. The next year the premium will increase as their exposure is for more than one year and each year thereafter for a period of four renewals the premium will steadily increase. The increase is because of the "load factor" they use on each renewal which contemplates picking up additional prior acts back to the retroactive date shown.

How can I help control my insurance costs?
  • Don't be afraid to disclose your expiring premiums. Underwriters use your expiring premiums and loss runs to determine your loss ratio. This often leads to experience rating your general liability premiums allowing for additional credits to be applied if you have been a profitable account.
  • Keep an excellent claims record. Try to minimize or eliminate claims through loss control and on-going training of owners and employees. Talk to your agent about submitting claims to determine if there are alternatives for the smaller general liability claims such as a larger general liability deductible to eliminate the reporting of smaller claims.
  • Maintain an excellent credit history.
  • Submit resumes or cover sheets explaining your experience and background. It is a very helpful sales tool when presenting your risk to an underwriter.
  • Use the same subs and mandate their limits be at least as high as yours. You must maintain a file of certificate of insurance. (Most businesses do not pay their subs until they have the certificate of insurance on file.)
TIPS: What do underwriters want to see?
  • NECC is looking for accounts with 4+ years of experience in mold remediation, fire and water damage restoration or other related fields (construction background). That is why they ask for resumes of key personnel. We have received quotes for new Servpro accounts that don't have the 4+ years in mold remediation, fire and water damage restoration but did have a background in construction. Don't rule yourself out, call us to discuss your experience.
  • Underwriters want to see a stable business. If you have experienced a down turn in gross sales you should write an explanation of why the sales have decreased. Perhaps you did a lot of mold remediation last year but don't want to do that anymore? Explain why there is a down turn and be conservative in the decrease, don't assume it will be large. This is why they ask for a current annual income statement or P&L, they use it to verify gross sales.
  • Underwriters want to see loss runs to determine if there are any loss trends that need to be addressed.
  • Are you acting as a "general contractor"? Underwriters are very tough on general contractors. Your premiums will be substantially larger and you will have fewer options if you are a general contractor so please know this beforehand.


What are Surplus Lines Insurers?
Surplus Lines Insurers ("non-admitted" carriers/ "non-standard" carriers) are not "licensed" in the state where the insured is located, although they must be "licensed" in their own state or country of domicile. They must be "approved" in each state they operate in. The surplus lines carriers are not subject to underwriting guidelines, rate and form filing requirements that "admitted"/"standard" carriers are subject to. For an account to be placed in the surplus lines market it must be declined by the standard market. While surplus lines is now your only market for pollution liability you do have other options for your general liability and when possible should pursue a standard market quote or second opinion.

I hope this has been helpful as well as informative. Our job as insurance agents is to be a partner you can turn to with your questions and concerns.

Please feel free to call me anytime at 1-800-756-9094 - Kari Tysdal-Nilles.

Asset Protection Agency, Inc.  |  1466 28th Street  Suite 100 |  West Des Moines, IA 50266  |  515-223-1600


Home