POLLUTION
LIABILITY
FOR CONTRACTORS
MANY CONTRACTORS HAVE MORE ENVIRONMENTAL EXPOSURE THAN THEY REALIZE — AND LESS PROTECTION THAN THEY ASSUME. IF YOUR WORK DISTURBS GROUND, HANDLES CHEMICALS, USES FUEL, CREATES DUST, OR OPERATES NEAR CONTAMINATION, POLLUTION LIABILITY IS NOT A SIDE ISSUE. IT IS A CORE LIABILITY ISSUE.
GENERAL CONTRACTORS, EXCAVATION, SITE, UTILITY, HVAC, PLUMBING, MECHANICAL, DEMOLITION, REMEDIATION, ABATEMENT, RESTORATION, PESTICIDE AND CHEMICAL APPLICATORS, AND SPECIALTY CONTRACTORS WITH SITE OR MATERIAL DISTURBANCE EXPOSURE.
POLLUTION LIABILITY SITS QUIETLY IN THE BACKGROUND UNTIL A RELEASE, DISTURBANCE, MIGRATION, OR CONTAMINATION PROBLEM HAPPENS. THEN IT BECOMES ONE OF THE MOST IMPORTANT ISSUES IN THE ENTIRE CLAIM — AND THE GAP IN A CONTRACTOR'S PROGRAM BECOMES VERY VISIBLE.
THE CPL PAGE EXPLAINS THE CORE COVERAGE DISCUSSION. THIS PAGE EXPLAINS WHY CONTRACTORS AS A GROUP NEED TO TAKE POLLUTION LIABILITY SERIOUSLY — AND GIVES A BROADER ENTRY POINT FOR CONTRACTORS WHO MAY NOT YET KNOW WHICH SPECIFIC PRODUCT FITS.
THE HARDEST PART FOR CONTRACTORS TO ACCEPT
CONTRACTORS TEND TO THINK IN TERMS OF GENERAL LIABILITY, AUTO, WORKERS COMP, UMBRELLA, AND EQUIPMENT. THOSE ARE CORE COVERAGES. BUT POLLUTION LIABILITY OFTEN SITS QUIETLY IN THE BACKGROUND — UNTIL IT ISN'T.
NORMAL CONTRACTOR ACTIVITIES THAT CAN CREATE POLLUTION EXPOSURE
A LOT OF CONTRACTORS DO NOT APPRECIATE HOW MANY NORMAL JOBSITE ACTIVITIES CAN CREATE POLLUTION EXPOSURE. THESE ARE NOT EXOTIC SCENARIOS. THEY ARE EVERYDAY CONTRACTING TASKS.
CLAIM TYPES THAT FORCE THE POLLUTION LIABILITY DISCUSSION
THESE ARE THE SPECIFIC LOSS SCENARIOS THAT PUSH CONTRACTORS INTO THE POLLUTION LIABILITY CONVERSATION — OFTEN AFTER THE FACT.
DAMAGED UNDERGROUND LINES
STRIKING AN UNDERGROUND UTILITY, FUEL LINE, OR CONTAMINATED SYSTEM CAN INSTANTLY CREATE A POLLUTION EVENT WITH THIRD-PARTY CONSEQUENCES.
FUEL OR FLUID RELEASES
EQUIPMENT LEAKS, TANK ISSUES, SPILLS DURING TRANSFER — FUEL AND HYDRAULIC FLUID RELEASES ARE AMONG THE MOST COMMON CONTRACTOR POLLUTION EVENTS.
SOIL OR GROUNDWATER ISSUES
CONTAMINATION THAT MIGRATES INTO SOIL OR GROUNDWATER CAN AFFECT NEIGHBORING PROPERTIES AND CREATE LONG-TAIL LIABILITY.
MOLD FROM WATER WORK
PLUMBING, ROOFING, RESTORATION, AND HVAC WORK CAN CREATE OR WORSEN MOISTURE CONDITIONS THAT LEAD TO MOLD AND MICROBIAL LIABILITY.
DISTURBANCE OF PRE-EXISTING CONTAMINATION
EXCAVATING OR DEMOLISHING A SITE WITH HISTORICAL CONTAMINATION CAN MAKE THE CONTRACTOR RESPONSIBLE FOR DISTURBING CONDITIONS THEY DID NOT CREATE.
THIRD-PARTY PROPERTY DAMAGE
NEIGHBORING PROPERTY, STRUCTURES, WATER SYSTEMS, OR BUSINESSES CAN ALL BECOME PART OF A POLLUTION CLAIM THAT STARTED ON THE JOBSITE.
REGULATORY ATTENTION
A POLLUTION EVENT ON A JOBSITE CAN DRAW IN ENVIRONMENTAL AGENCIES AND CREATE COMPLIANCE AND INVESTIGATION COSTS BEYOND THE ORIGINAL CLAIM.
CONTRACTUAL NON-COMPLIANCE
FAILURE TO CARRY REQUIRED POLLUTION LIABILITY CAN ITSELF BECOME A CONTRACT BREACH — INDEPENDENT OF WHETHER A LOSS ACTUALLY OCCURRED.
THE REAL REASONS CONTRACTORS PURCHASE POLLUTION LIABILITY INSURANCE
CONTRACTORS DO NOT ALWAYS BUY THIS PROACTIVELY. SOME BUY IT BECAUSE A CONTRACT DEMANDS IT. OTHERS BUY IT AFTER A CLOSE CALL. THE BEST TIME IS BEFORE EITHER OF THOSE HAPPEN.
CONTRACT REQUIREMENTS
OWNERS, DEVELOPERS, MUNICIPALITIES, AND PRIME CONTRACTORS INCREASINGLY REQUIRE POLLUTION LIABILITY AS A CONDITION OF BEING AWARDED WORK.
HIGH-SEVERITY CLAIM PROTECTION
A POLLUTION EVENT DOES NOT HAVE TO BE CATASTROPHIC TO BE EXPENSIVE. EVEN A CONTAINED FUEL SPILL CAN CREATE CLEANUP AND LIABILITY COSTS THAT TEST A CONTRACTOR'S BALANCE SHEET.
KNOWN PROGRAM GAP
CONTRACTORS WHO HAVE REVIEWED THEIR GL POLICY AND UNDERSTAND WHAT POLLUTION EXCLUSIONS LOOK LIKE IN THE REAL WORLD KNOW EXACTLY WHY THEY NEED THIS COVERAGE.
BIDDING LARGER PROJECTS
HIGHER-TIER, MORE SOPHISTICATED PROJECTS OFTEN REQUIRE A STRONGER INSURANCE PROFILE — INCLUDING POLLUTION LIABILITY — TO EVEN GET IN THE DOOR.
HIGHER-RISK OPERATIONS
CONTRACTORS WHO KNOW THEIR WORK CREATES MORE ENVIRONMENTAL EXPOSURE — REMEDIATION, ABATEMENT, DEMOLITION, UTILITY WORK — UNDERSTAND THIS COVERAGE IS NOT OPTIONAL FOR THEM.
BALANCE SHEET PROTECTION
A POLLUTION CLAIM WITHOUT THE RIGHT COVERAGE CAN BECOME A BUSINESS-ALTERING EVENT. CONTRACTORS WHO UNDERSTAND THIS BUY THE COVERAGE BEFORE THEY NEED IT.
CONTRACTOR POLLUTION LIABILITY — RELATED PAGES
USE THE LINKS BELOW TO MOVE INTO THE CORE CPL PRODUCT PAGE, A TRADE-SPECIFIC CONTRACTOR PAGE, OR A COMPARISON AND DECISION PAGE THAT FITS WHERE YOU ARE IN THE PROCESS.
COMMON QUESTIONS ABOUT POLLUTION LIABILITY INSURANCE FOR CONTRACTORS
WHAT IS POLLUTION LIABILITY INSURANCE FOR CONTRACTORS?
IS THIS THE SAME AS CPL?
WHICH CONTRACTORS MOST OFTEN NEED THIS DISCUSSION?
WHY IS GENERAL LIABILITY NOT ALWAYS ENOUGH?
WHEN SHOULD A CONTRACTOR REVIEW THIS?
REQUEST HELP WITH CONTRACTOR POLLUTION LIABILITY INSURANCE
USE THE FORM BELOW IF YOU WANT TO DISCUSS CONTRACTOR POLLUTION LIABILITY, CPL INSURANCE, A SPECIFIC TRADE EXPOSURE, A KNOWN GAP IN YOUR PROGRAM, OR A CONTRACT REQUIREMENT YOU NEED TO SATISFY. IF YOU WOULD RATHER TALK IMMEDIATELY, CALL / TEXT (412) 212-2800.