OUT OF THE ORDINARY INSURANCE

ENVIRONMENTAL INSURANCE FOR EXCAVATION & SITE CONTRACTORS

EXCAVATION AND SITE WORK CONTRACTORS FACE SOME OF THE MOST OBVIOUS ENVIRONMENTAL EXPOSURES IN CONTRACTING — YET MANY STILL TREAT GENERAL LIABILITY AS ENOUGH. IT IS NOT. WHEN YOUR WORK CUTS INTO GROUND, DISTURBS SOIL, TOUCHES DRAINAGE, OR EXPOSES UNKNOWN CONDITIONS, ENVIRONMENTAL LIABILITY IS PART OF YOUR CORE RISK PROFILE.

10+
COMMON EXPOSURE TYPES
11
CLAIM SCENARIOS
1
POLICY GAP THAT MATTERS
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EXCAVATION CHANGES CONDITIONS. THAT IS THE WHOLE POINT OF THE WORK. THE GROUND DOES NOT ALWAYS CONTAIN WHAT THE PLANS OR ASSUMPTIONS SUGGEST. SITE CONTRACTORS DO NOT NEED TO CAUSE A MASSIVE CHEMICAL DISASTER TO HAVE A VERY REAL POLLUTION LIABILITY ISSUE. SOMETIMES IT STARTS WITH NORMAL PROJECT ACTIVITY.
THIS PAGE IS FOR

EXCAVATION CONTRACTORS, SITE CONTRACTORS, EARTHWORK OPERATIONS, GRADING CONTRACTORS, LAND CLEARING COMPANIES, SITE PREPARATION CONTRACTORS, TRENCHING CONTRACTORS, FOUNDATION SITEWORK CONTRACTORS, PIPELINE EXCAVATION OPERATIONS, AND STORMWATER AND DRAINAGE SITE CONTRACTORS.

THE CORE PROBLEM

A STANDARD LIABILITY PROGRAM MAY LOOK FINE UNTIL THE CLAIM HAS A POLLUTION COMPONENT. ONCE THE FACT PATTERN SHIFTS INTO CONTAMINATION, RELEASE, MIGRATION, OR CLEANUP COSTS, THE INSURANCE DISCUSSION CHANGES FAST. EXCAVATION CONTRACTORS NEED A REAL ENVIRONMENTAL REVIEW — NOT JUST A GL RENEWAL.

THIS PAGE VS CPL

THIS IS THE TRADE-SPECIFIC INDUSTRY PAGE FOR EXCAVATION AND SITE CONTRACTORS. THE CPL PAGE IS THE CORE PRODUCT DISCUSSION MOST EXCAVATION CONTRACTORS SHOULD REVIEW NEXT. THIS PAGE EXPLAINS WHY THE CONVERSATION MATTERS — THE CPL PAGE EXPLAINS WHAT THE COVERAGE ACTUALLY DOES.

WHY EXCAVATION CONTRACTORS ARE EXPOSED

COMMON ENVIRONMENTAL EXPOSURES FOR EXCAVATION & SITE CONTRACTORS

AN EXCAVATION CONTRACTOR MAY ENCOUNTER UNKNOWN MATERIAL, DISTURB CONTAMINATED SOIL, DAMAGE AN UNDERGROUND LINE, CHANGE DRAINAGE, OR CAUSE RUNOFF ISSUES. THESE ARE NOT EXTREME EDGE CASES. THEY ARE REALISTIC JOBSITE SCENARIOS.

DISTURBANCE OF CONTAMINATED SOIL
DAMAGE TO UNDERGROUND FUEL OR CHEMICAL LINES
RUNOFF AND SEDIMENT ISSUES
STORMWATER PROBLEMS
DAMAGE TO BURIED UTILITIES
MIGRATION OF MATERIAL OFF-SITE
DISTURBANCE OF HISTORICAL INDUSTRIAL CONDITIONS
FUEL OR FLUID RELEASES FROM HEAVY EQUIPMENT
IMPROPER HANDLING OF EXCAVATED MATERIAL
WORK ON SITES WITH LIMITED SUBSURFACE HISTORY
WHAT CAN GO WRONG

CLAIM SCENARIOS EXCAVATION CONTRACTORS ACTUALLY FACE

THIS IS WHERE MANY HIGH-SEVERITY LOSSES START — AND WHERE MANY CONTRACTORS LEARN TOO LATE THAT THEIR INSURANCE PROGRAM WAS NOT BUILT FOR THE REALITY OF THE WORK.

01

UNDERGROUND LINE DAMAGE

STRIKING A LINE CONTAINING FUEL, CHEMICALS, OR CONTAMINANTS CAN INSTANTLY ESCALATE FROM PROPERTY DAMAGE TO A FULL POLLUTION EVENT.

02

SPILL OR RELEASE EVENT

EQUIPMENT LEAKS, FUEL SPILLS, AND FLUID RELEASES DURING SITE OPERATIONS ARE AMONG THE MOST FREQUENT CONTRACTOR POLLUTION TRIGGERS.

03

RUNOFF & SEDIMENT MIGRATION

DISTURBED GROUND AND CHANGED DRAINAGE PATTERNS CAN CREATE RUNOFF PROBLEMS THAT IMPACT NEIGHBORING PROPERTY OR WATERWAYS.

04

THIRD-PARTY PROPERTY DAMAGE

CONTAMINATION MIGRATING OFF-SITE CAN AFFECT NEIGHBORING LAND, STRUCTURES, OR WATER SOURCES AND GENERATE SIGNIFICANT THIRD-PARTY CLAIMS.

05

PROJECT SHUTDOWN

AN ENVIRONMENTAL DISCOVERY OR RELEASE EVENT CAN SHUT DOWN A JOBSITE WHILE INVESTIGATIONS AND REMEDIATION REQUIREMENTS ARE SORTED OUT.

06

REGULATORY ATTENTION

A SITE POLLUTION EVENT CAN DRAW ENVIRONMENTAL AGENCIES IN, ADDING INVESTIGATION AND COMPLIANCE COSTS ON TOP OF THE UNDERLYING LOSS.

07

CLEANUP COSTS

RESPONSE COSTS, SOIL REMOVAL, GROUNDWATER TESTING, AND RELATED REMEDIATION EXPENSES CAN ACCUMULATE QUICKLY AFTER EVEN A CONTAINED EVENT.

08

CONTRACTUAL NON-COMPLIANCE

NOT CARRYING REQUIRED POLLUTION LIABILITY CAN ITSELF BECOME A CONTRACT BREACH — SEPARATE FROM WHETHER A POLLUTION LOSS ACTUALLY OCCURRED.

WHEN TO ACT

WHEN EXCAVATION CONTRACTORS START ASKING THE RIGHT QUESTIONS

THESE ARE THE MOMENTS THAT MOST OFTEN PUSH SITE CONTRACTORS INTO THE ENVIRONMENTAL INSURANCE CONVERSATION. THE BEST TIME IS BEFORE ANY OF THEM HAPPEN.

CONTRACT

A PROJECT OWNER REQUIRES POLLUTION LIABILITY AS A CONDITION OF BEING AWARDED THE WORK.

CLAIM EVENT

A UTILITY STRIKE CREATES MORE THAN JUST PROPERTY DAMAGE — AND THE POLLUTION COMPONENT SURFACES FAST.

SITE REPORT

A PHASE I OR PHASE II REPORT HINTS AT SUBSURFACE CONCERNS THAT CHANGE THE RISK PICTURE FOR THE PROJECT.

GROWTH

THE CONTRACTOR IS MOVING INTO LARGER OR MORE COMPLEX WORK WHERE THE ENVIRONMENTAL EXPOSURE INCREASES SIGNIFICANTLY.

SITE TYPE

EARTHWORK IS HAPPENING ON AN INDUSTRIAL, PETROLEUM, OR REDEVELOPMENT PROPERTY WHERE SUBSURFACE HISTORY IS UNCERTAIN.

PRIOR EVENT

A PRIOR CLAIM OR NEAR MISS EXPOSES A GAP IN THE PROGRAM THAT THE CONTRACTOR NOW UNDERSTANDS IS REAL AND RECURRING.

CONTRACT REVIEW

A BROKER, ATTORNEY, OR PROJECT RISK MANAGER ACTUALLY REVIEWS THE CONTRACT LANGUAGE AND FINDS THE INSURANCE REQUIREMENT WAS ALREADY THERE.

FAQS

COMMON QUESTIONS ABOUT ENVIRONMENTAL INSURANCE FOR EXCAVATION & SITE CONTRACTORS

WHY DO EXCAVATION CONTRACTORS NEED ENVIRONMENTAL INSURANCE?
BECAUSE THEIR WORK NATURALLY INVOLVES DISTURBING GROUND, EXPOSING UNKNOWN CONDITIONS, AND CREATING THE POSSIBILITY OF RELEASE, MIGRATION, OR CONTAMINATION-RELATED CLAIMS. EVEN NORMAL SITEWORK CAN CREATE POLLUTION LIABILITY EXPOSURE IF THE CONDITIONS OR RESULTS OF THE WORK GO BADLY.
IS THIS JUST FOR CONTRACTORS WORKING ON DIRTY INDUSTRIAL SITES?
NO. EVEN ORDINARY SITEWORK CAN CREATE POLLUTION LIABILITY EXPOSURE IF CONDITIONS OR RESULTS GO BADLY. THE SITE DOES NOT HAVE TO BE A KNOWN CONTAMINATED PROPERTY FOR AN ENVIRONMENTAL CLAIM TO HAPPEN. RUNOFF, UTILITY DAMAGE, FUEL SPILLS, AND SEDIMENT MIGRATION CAN OCCUR ON ROUTINE PROJECTS.
DOES A UTILITY STRIKE CREATE ENVIRONMENTAL ISSUES?
IT CAN. IF THE LINE OR SYSTEM INVOLVED CONTAINS FUEL, CHEMICALS, OR OTHER CONTAMINANTS, THE CLAIM MAY BECOME AN ENVIRONMENTAL MATTER VERY QUICKLY. WHAT STARTS AS A PROPERTY DAMAGE CLAIM CAN SHIFT INTO A POLLUTION LIABILITY DISCUSSION BEFORE THE CONTRACTOR FULLY UNDERSTANDS WHAT IS HAPPENING.
IS THIS THE SAME AS CPL?
THIS PAGE IS THE TRADE-SPECIFIC INDUSTRY PAGE FOR EXCAVATION AND SITE CONTRACTORS. CPL — CONTRACTORS POLLUTION LIABILITY — IS THE CORE PRODUCT DISCUSSION MOST EXCAVATION CONTRACTORS SHOULD REVIEW. THE CPL PAGE EXPLAINS WHAT THE COVERAGE DOES AND HOW IT IS STRUCTURED.
WHEN SHOULD AN EXCAVATION CONTRACTOR REVIEW THIS COVERAGE?
BEFORE A PROJECT REQUIRES IT, BEFORE MOVING INTO LARGER OR MORE COMPLEX WORK, AND BEFORE A CLAIM REVEALS THE GAP. THOSE THREE MOMENTS ARE WHEN MOST EXCAVATION CONTRACTORS WISH THEY HAD ALREADY HAD THE CONVERSATION.
CONTACT KELLY INSURANCE GROUP

REQUEST HELP WITH EXCAVATION & SITE CONTRACTOR ENVIRONMENTAL INSURANCE

USE THE FORM BELOW IF YOU WANT TO DISCUSS POLLUTION LIABILITY FOR EXCAVATION OR SITE WORK, A SPECIFIC PROJECT OR SITE EXPOSURE, A CONTRACT REQUIREMENT, OR A GAP IN YOUR CURRENT INSURANCE PROGRAM. IF YOU WOULD RATHER TALK IMMEDIATELY, CALL / TEXT (412) 212-2800.