Editor's note: John Culotta is programmanager, PCOpro, at Brownyard Group

Spring is finally upon us and that means the busy season forpest control operators (PCOs). As they begin treating homes andbusinesses, not only will they face termite swarms and other pests,but also the risk of customer claims that their treatment waseither ineffective or it damaged persons or property.

The risks abound, whether they are chemicals used to treattermites or the now preferred heat treatments for bed bugs. Thespecialized heaters used for bed bug eradication not only damagepersonal belongings, but also have ignited fires when placed tooclose to flammable material. They even have activated sprinklersystems, causing water damage.

A PCO's commercial general liability (CGL) policy is key toprotection in these cases, but many policies lack or have subparversions of the most crucial policy endorsements, most notablypollution and care, custody and control. Plus, many excessliability and umbrella policies fail to provide the broadprotection they promise.

Care, Custody and Control

While typical CGL policies cover damage to a customer's real andpersonal property, they usually do not cover damage if thatproperty is in the PCO's “care, custody and control.” In fact, mostpolicies specifically exclude this coverage, and without completecare, custody and control protection, a PCO's policy may beessentially worthless.

When adding this endorsement, it's important to remember thatnot all are created equal. Some may still leave PCOs at risk. Hereare a few things to look for in this endorsement:

• Coverage for “real” property, not just personal property. Thebigger liability issue is the building, not personal items. Forexample, if a PCO is doing a spray treatment outside and itdiscolors the building's vinyl siding, it would not be coveredwithout an endorsement that covers real property.
• Coverage for work done by subcontractors hired by the PCO, suchas fumigation companies. If a subcontractor tents a home and causescatastrophic damage, it may not be covered.
• Coverage for damage caused during spot treatments. Somepolicies will exclude spot treatments, covering only treatment tothe entire structure. But spot treatments are common and have thepotential to cause significant damage if done improperly.

Pollution

Many PCOs rely only on a pesticide and herbicide endorsement inthe event of a chemical spill or leak at the job site. This can bea big mistake. These endorsements are not enough and leave a PCOliable for some of the most damaging claims. Here are some coveragedetails to consider:

• Make sure the pollution endorsement covers what are often thebiggest costs when there is a spill: the environmental damage andclean up. Surprisingly, many policies do not.
• Consider spills or leaks that occur at the PCO's office orfacility. These are not covered by the job site pollutionendorsement, but can be included by modifying the pollutionexclusion.
• Add a pollution auto transit endorsement. Most policies onlycover spills in a vehicle if it is involved in a collision oroverturn. But the auto transit pollution endorsement also coversleaks and spills when a vehicle is parked at a job site.

Excess Liability and Umbrella

It's no secret that PCOs should have an excess liability orumbrella policy to provide an additional layer of protection abovetheir primary CGL policy. Unfortunately, many of these policies donot extend over all the coverages, including care, custody &control and pollution endorsements.

For example, if a chemical spill at a job site triggers agovernment-mandated clean up, the cost could easily surpass thepolicy's primary pollution limits and reach into the excess layer.The same would be true for a claim in a home, where treatmentresulted in a fatal or serious poisoning. Such claims can easilyexceed a typical $1 million primary limit.

Monetary Damage

Beyond these general liability issues, the emergence of bed bugshas led to an increase in customers seeking monetary damages tocompensate them for loss of income and other expenses caused by aPCO's negligence. The hotel industry is a good example. If aPCO treats multiple hotel rooms infested with bed bugs and thattreatment proves to be ineffective, the hotel must close the roomsfor additional treatments. They can hold the PCO negligent andresponsible for lost income and other expenses.

This could easily happen on a cruise ship, at a summer camp, ina movie theater or practically any other business that canpotentially lose income. In fact, although bed bugs are the mostcommon example of these types of claims, many kinds of infestationwhere treatment is not effective can also result in customersseeking monetary damages.

Unfortunately, policies that include this coverage are notwidely available, so it's very important to confirm whether or nota PCO's current insurance policy would cover such aclaim.

As an industry with unique risks, pest control requires veryspecialized coverage. You can help make sure costly claims don'tbite your PCO customers' businesses by knowing where standard CGLforms fall short, how far excess liability and umbrella coveragesneed to reach and why clients should seek specific coverages.