If you are a contracting firm, protecting yourself from pollution risks that arise during normal construction operations is highly recommended. Pollution is specifically excluded in most general liability coverage forms and leaves construction companies with a significant "gap" in coverage.
Contractor's Pollution Liability (CPL), or pollution liability, provides coverage for pollution conditions that arise as a result of a contractor’s work or work done by a subcontractor on your behalf. Pollution liability can also be restricted to specific sites where a known or unknown pollution exposure may exist.
What Pollution Liability Insurance Covers
If site run-off sent solvents into a nearby groundwater supply and contaminated residential wells, or excavation work spread contaminated soil to a new site, you could be protected with a pollution liability policy. Those aren’t the only claims scenarios in which you could benefit from CPL; other risks could include:
- Fuel or chemical spills
- HVAC errors that release airborne bacteria or mold
- Disturbing naturally occurring asbestos
- Leaking underground storage tanks
- Site contamination
The aftermath of an environmental claim could be costly, time consuming, and even damaging to your reputation. Pollution liability is there to help you mitigate for these types of incidents. Contractor's pollution liability can be purchased with multiple coverage options to protect your business. These include:
- Coverage for third-party bodily injury claims caused by a pollution related event
- Coverage for property damage caused by the seepage, migration or dispersal of pollutants at the job site
- Coverage for environmental damage
- Coverage for defense and clean-up expenses
- Coverage for pollutants in the course of transportation
- Coverage for the accidental disposal of pollutants like lead, asbestos or silica at a non-owned disposal site.
Do You Need Contractor's Pollution Liability Coverage?
Pollution liability fills in the gaps in your general liability policy, which more than likely excludes pollution coverage. Some of the contractors who typically carry pollution coverage include:
- General contractors who want to mitigate for mold, asbestos or lead exposures for both new construction and remodel.
- General engineering contractors involved with sewer work or heavy excavation or grading operations
- Trade contractors and subcontractors such as painters, tile, boiler, or mechancial contractors who have expsoure to asbestos, lead or silica dust.
- Professional testing firms and consultants who provide professional services in addition to their contracting operations. For example, electrical testing with exposure to transformer fluid.
Contractor's Pollution Liability has come down in price over the years and is now very affordable. It can be purchased either on a claims-made basis or an occurrence form basis. Deductibles or Self Insured Retentions are reasonable and broad coverage is available including coverage for mold, asbestos, lead or silica. Because most general liability policies exclude these types of pollutants, pollution liability is an important coverage that will eliminate gaps in your general liability coverage.
Let Beach & O’Neill Insurance Associates find the right contractor's pollution liability coverage for you. We can help you evaluate your pollution exposure and provide coverage options to protect you from unexpected pollution losses.