A few years ago we told you about Wal-Mart paying a multimillion dollar fine to the EPA for storm water runoff from their construction sites. The fines were generated through the construction vendors Wal-Mart hired to do work for them.
We suggested one strategy Wal-Mart would probably institute would be requiring certain vendors they hire to evidence proof of environmental liability insurance. That day has arrived.
Over the course of the last few weeks we have had agents contact us on insureds looking to do work for Wal-Mart but in order to even offer a bid a vendor has to be able to include with their bid package an insurance certificate evidencing proof of Contractors Pollution Liability (CPL) insurance being in force. So Wal-Mart has gone a step further and said if you do not have CPL in place we do not want you to even submit a bid to us.
In other words, No CPL, no work with Wal-Mart.
We all know that Wal-Mart carriers a big stick and the businesses they impact are vast. So if it makes good business sense for Wal-Mart to require CPL insurance I am sure you will see vendors of Wal-Mart along with other businesses implementing this same risk transfer strategy.
environmental Strategist, risk management strategy: For years we have stated that environmental insurance allows insureds to use the environmental insurance they purchase as a marketing tool to drive growth and profits. Wal-Mart has now reinforced this and do not be surprised when this becomes a requirement for more and more contractors bidding jobs. We have been seeing this trend growing for years and with companies like Wal-Mart getting on board it just solidifies that CPL coverage will become part of doing business for contractors.