The RRP Rule and Insurance Issues for Contractors

[ChrWright]

http://replacementcontractor.com/industry-news.asp?sectionID=0&articleID=1186994

And even if your company is EPA-certified to remove lead paint safely and practices lead-safe renovation, there is nothing to prevent a homeowner from filing a suit. Lead-safe certification and practices only make it less likely that such a suit would prevail. In the event of a negotiated settlement or a verdict for punitive and other damages, you probably wouldn't be covered by your general-liability insurance.

[afkama]

"Don't assume that your general-liability policy covers you in the event of a lead poisoning suit."


http://replacementcontractor.com/industry-news.asp?sectionID=0&articleID=1186994

[afkama]

Heh heh.
That wasn't a duplicate. We were posting at the same time.
Obviously we are on the same mailing list.

[orson]

I tried to review my policy but as I was reading my mind got continually number and dumber until I started drooling and twitching.

I guess I'll have to call my agent.

[afkama]

I tried to review my policy but as I was reading my mind got continually number and dumber until I started drooling and twitching.

I guess I'll have to call my agent.

Same here. I thought I almost had it, then the next thing I knew I woke up in the corner, in the fetal position.

[ChrWright]

Nothing like a hump day nut shot to brighten up your day.

http://pix.motivatedphotos.com/2009/4/1/633742195480192710-nutshot.jpg

[Washashore]

As quoted from the same article noted in above posts

"Costs for pollution insurance typically range between about $1,800 up to $5,000. Kinsey cites the figure of $2,500 as approximately what a remodeling contractor can expect to pay as an annual premium for pollution insurance covering lead. "Should they buy it? Most definitely," he says. "Should they shop? Most definitely."

Let's see, we've averaged about 9 homes a year that were built before 1978 in the last couple of years.

Average cost of pollution insurance: $2500.00
Divide by 9 Jobs = $277.78 per job

Well, I guess I'm going to have to do all the RRP Compliance for free and then, kick in an extra $110.78 out of my own pocket so I won't go over the EPA's published assessment of what it will cost to comply. (They say between $35.00 to $167.00 per Job.)

Washington DC- A Fantasy World....:censored:

[Allrounder]

My agent found a pollution policy that he said would cover me, but he can't even give me a quote without filling out a ton of paperwork regarding the nature of the work that we do and how we do it. I filled it out on Monday, I'll keep you posted with what I find out.

[ChrWright]

My agent found a pollution policy that he said would cover me, but he can't even give me a quote without filling out a ton of paperwork regarding the nature of the work that we do and how we do it. I filled it out on Monday, I'll keep you posted with what I find out.

I'm currently going through the same thing. My agent tells me the pollution policies haven't been very popular, but the insurance companies are re-evaluating rates and coverages in light of the new rule.

One company he looked at had a minimum policy of $10K. They recently reduced it to $7,500--but he's looking for others. I have about six pages of info to fill out before he can get me any hard numbers.

[PA Woodbutcher]

I'm currently going through the same thing. My agent tells me the pollution policies haven't been very popular, but the insurance companies are re-evaluating rates and coverages in light of the new rule.

One company he looked at had a minimum policy of $10K. They recently reduced it to $7,500--but he's looking for others. I have about six pages of info to fill out before he can get me any hard numbers.

That ain't good. I was wondering who was going to make all the money off this. It sure ain't going to be us.

[ChrWright]

That ain't good. I was wondering who was going to make all the money off this. It sure ain't going to be us.

It's pretty staggering math:

If 100,000 firms get a pollution policy @ $2,000 conservatively.... That's $200,000,000.

That money won't just materialize out of no where. It's worth it for the protection, but leaves a pretty sour taste in my mouth.

[Silvertree]

Most small companies will roll the dice on this insurance coverage.

When you add it all up its a direct attack on one and 2 man shops, I don't think that's on purpose, but it will have that effect.

On another note, some will turn this into an advantage and thrive within these rules. Its going to be an interesting year.

[Allrounder]

My agent found a pollution policy that he said would cover me, but he can't even give me a quote without filling out a ton of paperwork regarding the nature of the work that we do and how we do it. I filled it out on Monday, I'll keep you posted with what I find out.

Just got an email from my agent. He must have hit the send button right before he left for the day, since he was gone for the day when I called him. Here's the news:

$3750 annual premium for $1 million in pollution coverage (does not include mold though), with a $1k deductible. The premium is based on my gross sales, which is only $150k, and would actually go up if my sales increased, regardless of whether or not those sales are "pollution" related or not.

Ouch. My regular liability policy is only $700 per year!!

I'm going to look into a liability umbrella next, not sure if it would cover lead though.

[naptownCr]

If i were not a corporation or LLC l would seriously look into becoming one pronto. Set up a separate company to own the equipment and lease it to the contracting end. Make sure the contracting co has few assets. I have not read the rule but can the fines cut the corporate veil of protection or are they levied on individuals instead of company's

[afkama]

I have not read the rule but can the fines cut the corporate veil of protection or are they levied on individuals instead of company's

If I remember- individuals can be held liable.
In any case in these types of liability cases the veil can be pierced.

[naptownCr]

If I remember- individuals can be held liable.
In any case in these types of liability cases the veil can be pierced.

This will put a serious hurting on the small owner sole props. Much more so than the large contractors.

[WarnerConstInc.]

I don't think my customers could afford to pay me another 150 bucks a week just for more insurance. Does this mean I can pollute anything I want and mt insurance will pay for it?

I am going to go watch that one movie with john travolta in, you know the one about pollution.