Delores Kaczor was enjoying her apartment while Pacific Restorations was working on the apartment building owned by Roy Street. What Delores didn't know at the time was that fumes from a toxic ingredient in the deck-waterproofing treatment were wafting into her apartment and into her lungs. The fumes aggravated her pre-existing pulmonary disease. After she was hospitalized she sued both Pacific and the apartment owners, Roy Street Associates, for her injury.

The insurance companies for Pacific and Roy Street Associates refused to defend or indemnify because their policies contained pollution exclusions.

Click here to see how the courts ruled.

The pollution exclusion is a part of almost every General Liability policy and coverage form. It is also one of the most litigated exclusion. The standard exclusion has many important exceptions but some carriers insist on attaching endorsements that eliminate even those exceptions.

Click here to read the PF&M discussion of the pollution exclusion and the various endorsements that are available to amend it. This article also contains a number of pollution-related court cases.

Pacific Restorations made a mistake in the way they applied the waterproofing treatment which led to a serious injury. Contractors may believe they are experts and will never have a loss because of the care they take but we all know that accidents and mistakes can happen. Are you interested in writing a book of casual or artisan contractor business?

Pacific Restorations is a landscape contractor. Click here to review the Landscape Contractors Narrative in the Risk Survey Commercial to research the exposures and consider coverages to offer.

Once you have identified contractors you would like to pursue, contact is essential. The good news is that you can provide a survey of their operations to help the two of you design a complete insurance program.

Click here for a Business Building Letter you could mail to potential clients.