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Combined pollution and professional liability coverage expands in construction

Westfield Specialty says demand is driven by contractual requirements that flow from owners to general contractors and then down to subcontractors.

Reported · Written up by our desk · Property Insurance

Construction insurance demand is shifting as a building boom pushes projects into areas that insurers are less accustomed to underwriting, including multi billion dollar data center builds, large tunnel infrastructure work, and major site development efforts, according to Risk & Insurance.

The outlet reports that contractual requirements are increasingly requiring general contractors, and in turn their subcontractors, to carry both pollution and professional liability coverage. Westfield Specialty says the demand for a combined pollution and professional product is driven largely by those requirements on both sides of the contract.

Risk & Insurance adds that insurers have historically handled pollution and professional liability separately, but Westfield Specialty developed a single comprehensive policy that combines contractors’ pollution and professional liability coverage. The company said contractors often are less familiar with pollution and professional exposures than with standard general liability protections.

Westfield Specialty also attributed the combined approach to knowledge gaps, saying contractors generally are not as familiar with the specialized risks or the protections available to address them, and that bundling coverage helps meet growing coverage obligations without sacrificing protection.

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