Chinese drywall remediation
is shaping up to be the largest single source of potential new revenue for
restoration contractors in history. According to the actuarial consulting firm
Towers and Perrin, the total economic losses from Chinese drywall, as reported
in Business Insurance on Nov. 2, 2009, could fall between $15 billion and $25
billion.
Deciding when and how to
report a claim or a potential claim under a business liability policy is a
challenge most firms do not have a lot of experience with. In fact, most
owners, based on their past track record, think they will never have a
liability claim made against them.
Major changes in the property and casualty insurance business are coming. Now is the time to plan for these changes to avoid the predicted turmoil in the insurance marketplace.
In 2007, most firms in the restoration business need a Contactors Pollution Liability (CPL) insurance policy to fill the insurance coverage gap created by the “mold-related” claims exclusions in Commercial General Liability (CGL) insurance policies. By following the simple suggestions offered below, restoration contractors can lower their liability insurance expenses and significantly improve the quality of the CPL insurance they buy.
