Contractors pollution liability can also be included in a CPPI policy or it can be written on a stand-alone basis.

Coverage Options

The contractors protective and professional indemnity (CPPI) policy has become a necessity for the design-build contractor. The policy provides three basic coverages:

  • Professional liability: Provides third-party coverage to the design-build contractor for claims alleging negligent acts, errors, or omissions in the performance of any professional service performed by the contractor or on their behalf by a downstream design professional
  • Protective indemnity coverage: Reimburses the design-build contractor for damages that they are legally entitled to recover from a downstream design professional that exceed the funds available from that design professional’s insurance program
  • Rectification coverage: Provides first-party coverage to the design-build contractor for expenses that they reasonably and necessarily incurred in order mitigate or rectify a negligent act, error, or omission that arose from professional services performed by or on behalf of the design-build contractor that would otherwise have lead to a professional liability claim


Like any other insurance policy, it’s critically important to understand the terms and conditions in the CPPI policy. Unlike workers compensation and general liability, these policies are not standardized across the industry and there are about a dozen different insurance carriers offering the coverage in some form or fashion.

Key Features

  • Faulty workmanship coverage for qualifying subcontractors
  • Defense outside the limits for professional and pollution claims
  • Separate per project aggregate limits available
  • Site pollution coverage available via endorsement
  • First and third-party transportation pollution
  • Blanket non-owned disposal site coverage
  • Microbial substances (fungus) claims made and occurrence-based coverage

Target Classes

  • Trade contractors (carpenters, mechanical, drywall, electrical, masonry, painting, plumbing)
  • General contractors
  • Construction managers
  • Design-build firms
  • Street & road contractors
  • Civil/infrastructure contractors