Protection for environmental professionals from claims arising out of their professional services, including allegations of negligence, errors or omissions that result in financial loss, bodily injury, property damage or pollution conditions.
Environmental consultants face unique exposures that standard E&O policies often exclude or limit. Environmental E&O provides dedicated coverage for the advice, assessments and technical work performed by these professionals. It helps reduce the financial impact of allegations, regulatory involvement or project failures connected to professional decisions.
An environmental consultant completed a Phase I ESA and failed to identify historical operations that indicated a high likelihood of soil contamination. A subsequent buyer discovered contamination after purchase and sued the consultant. Environmental E&O responded to defense and settlement costs.
A consultant performed groundwater sampling but used improper techniques. The sampling underestimated contaminant concentrations and delayed cleanup. Regulators required additional work and the client sought damages. Environmental E&O covered the resulting claim.
A remediation plan underestimated the volume of impacted soil. Costs escalated significantly and the client alleged negligence. Environmental E&O covered defense and indemnity.
An indoor air quality consultant declared an office building mould free. Tenants later became ill and mould was found in hidden areas. The consultant faced claims for bodily injury and property damage. Environmental E&O responded.
A consultant submitted incorrect data to a regulator, leading to fines for the client and project delays. The client sued for damages, and Environmental E&O covered defense and settlement amounts.
How Environmental E&O responds to the questions brokers ask us most often.
A standard professional liability policy typically excludes pollution, and a pollution policy typically excludes professional services. Environmental work sits in the middle: a missed contaminant in a Phase II assessment is both a professional error and a pollution claim. Environmental E&O is written so both elements respond under one form instead of two insurers pointing at each other.
Environmental consultants and engineers, remediation specialists, hazardous materials surveyors, and contractors whose scope includes design, assessment or advisory work. Anyone whose professional opinion can be the basis of a claim about contamination is a candidate.
Regulatory proceedings are covered on the TerrAssure form. That matters because environmental claims often start with a regulator rather than a client lawsuit, and the cost of responding to a proceeding can exceed the eventual damages.
Environmental E&O is a claims made cover, so the policy that responds is the one in force when the claim is made and reported, not when the work was performed. Continuity of cover and the retroactive date matter a great deal, so brokers should confirm both when moving an account between insurers.
Not usually. Environmental E&O responds to the professional services element and includes pollution cover connected to those services. A contractor performing physical work at third party sites still needs Contractors Pollution Liability for the operations exposure. Many consultants who also self-perform remediation carry both.
Mitigation costs are a covered item, which allows spend on limiting a loss once a problem is identified rather than waiting for a claim to be filed. The scope and any sub-limit are set out in the issued policy.
Coverage described here is a summary. The issued policy wording governs in all cases. Ask an underwriter about a specific risk.
Protect your environmental consulting practice with dedicated Environmental E&O coverage.
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