Why Contractors Need Pollution Liability Insurance

In today’s industry, it’s imperative that contractors have a Construction Insurance policy that specifically includes pollution liability insurance. It’s important to take care of all pollution events, no matter how big or small. You don’t know what kind of long-term impact this kind of issue will have on a business, so it’s always good to be prepared.

Pollution liability insurance takes care of your business for the long haul, whether it’s damaging heavy rain or a huge oil spill off the ocean. These are things that just aren’t covered by a standard general liability insurance policy, leaving many professionals vulnerable to claims without coverage. This is a closer look at why contractors need pollution liability insurance.

Why This Coverage is Important

CPL (contractors pollution liability) coverage provides protection for third-party injury, property damage, defense and clean-up as a result of pollution conditions based on your company’s behalf. It also protects you if the work at fault was at the hand of subcontractors. Sure, it seems like your general liability policy should have this covered. But in reality, it doesn’t. There are pollutants—an irritant or contaminant—in the air that can be solid, gaseous or liquid. It’s toxic waste in the form of smoke, vapor, soot, fumes and more. These types of things can be hazardous to everyone’s health, making it that much more necessary to have some kind of business protection in place. Pollutants are a whole new ballgame that require a specialized type of coverage for their mishaps. General liability policies have exclusions from pollution, unfortunately, meaning purchasing the add-on is essential.  

Who This Coverage Works For

If you’re running a construction operation, then your chances of an environmental incident transpiring are high. If you’re a contractor (general or specialist), having this insurance works for you. But some contractors are more at risk than others, coming into contact with mold, asbestos and silica, as well as other contaminants. Contractors who are immersed in these areas should consider looking into CPL coverage:

  • Roofing
  • Maintenance
  • Demolition
  • General contractors
  • Street and road
  • Industrial and pipeline
  • Sewer, waste and utility
  • Grading, site and excavation
  • Electrical, HVAC and mechanical
  • Above/below ground storage tanks
  • Abatement and remediation

This type of coverage can be offered on a project basis or as a blanket program. A project will have coverage for the duration of the project while a blanket program provides coverage for all defined operations that take place during the policy term. While no one expects for this type of thing to happen, it’s always good to be prepared for it. The cost of not handling it could be absolutely devastating to your business. Make sure you have a construction insurance policy including pollution liability coverage, you’ll thank yourself later for it.

About ISU / The Olson Duncan Agency

At ISU-The Olson Duncan Agency, our goal is to provide clients with a total solution, not just a quote or a contract. We provide businesses and individuals with insurance and risk management solutions, and we aim to provide real value and build trustworthy, long-term relationships with our clients. To learn more about our services, give us a call today at (310) 373-6441 to speak with one of our professionals.