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XL Catlin adds rectification expense cover to contractor’s professional and pollution legal liability insurance


May 30, 2016   by Canadian Underwriter


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Contractors and environmental consultants in Canada and the United States now have access to enhanced protection under XL Catlin’s contractor’s professional and pollution legal liability insurance with the addition of rectification expense coverage.

Standard professional liability coverage addresses third-party claims related to an error and omission, XL Catlin notes in a statement last week.

The company’s new rectification expense coverage “provides first-party insurance coverage to address the costs to correct an error or omission in an insured’s professional services, whether rendered by the contractor or on their behalf.”

The enhanced offering is designed to help contractors and environmental consultants protect themselves from costly mistakes, XL Catlin reports.

“Contractors of all sizes and types face professional liability exposures, ranging from value engineering, field changes to design, vicarious liability from subcontracted design and self-performed design work,” Matt O’Malley, president of XL Catlin’s environmental insurance business, explains in the statement.

“When they err in providing these services, they need the financial wherewithal to rectify mistakes and keep the project moving along,” O’Malley notes, while also helping to avoid an issue or mistake from becoming a bigger, more costly issue.

Available in the U.S. and Canada, contractor’s professional and pollution legal liability insurance offers liability limits of as much as US$50 million for pollution coverage and US$25 million for professional liability coverage. In Canada, the policy is available on a licensed basis through XL Specialty Insurance Company – Canadian branch.

“Addressing errors before a third-party claim is made may reduce the overall costs and expenses associated with an error, preserve more of the contractor’s policy limits, help get the project to a timely completion and preserve the contractor’s relationships and reputation with clients and other contractors,” notes Catherine Cleary, executive underwriter in environmental for XL Catlin.