What is Pollution Liability Insurance for Contractors?
Contractors Pollution Liability (CPL) Insurance covers contractors against third-party claims for damages caused by pollution arising from the contractor’s work.
These conditions can include the release of pollutants into the environment as a result of the contractor’s work, which can occur suddenly or gradually, depending on the nature of the pollutants and the circumstances of the release.
Why Does Your Business Need Pollution Liability Insurance for Contractors?
Pollution incidents can be costly—not just financially but also reputationally. The risks are exceptionally high in industries involved with heavy machinery, hazardous materials, and significant changes to landscapes or structures.
This type of insurance is important as standard commercial general liability policies exclude coverage for pollution-related incidents, leaving a significant coverage gap.
What Does Contractors Pollution Liability Insurance Cover?
Contractors Pollution Liability insurance typically covers:
- Claims for bodily injury and property damage resulting from pollution incidents.
- Regulatory fines
- Clean-up costs/emergency response costs
- Legal defence costs
- Business interruption losses
It’s important to note that Contractors Pollution Liability policies can vary in coverage depending on your insurance provider and specific policy. If you’re interested in pollution liability contractors insurance, the advocates at ALIGNED will ensure your business is covered with a policy that makes the most sense for your specific line of work.
Who Needs Contractors Pollution Liability Coverage?
Any contractor interacting with environments where pollutants could be disturbed or released should consider CPL insurance. This includes, but is not limited to:
- General contractors involved in building construction, renovation, or demolition.
- Trade contractors, such as plumbers, electricians, and HVAC technicians, who might handle materials that could become pollutants.
- Specialty contractors, such as those working in asbestos removal, landscape construction, and site preparation.
What’s the Difference Between Contractors Pollution Liability Insurance (CPL) & Environmental Impairment Liability Insurance(EIL)?
CPL is specifically designed for contractors and covers pollution incidents that may occur during construction and contracting operations. It typically covers sudden, accidental, and gradual pollution caused by the contractor’s work.
On the other hand, EIL is similar to premises pollution liability as it is broader and intended to cover businesses against claims for damage caused by environmental pollution that can affect air, water, and land due to the company’s operations or from conditions on their property. This insurance often covers gradual pollution events that unfold over a longer period rather than sudden and accidental occurrences.
Align Your Business With Appropriate Contractors Pollution Legal Liability Insurance
At Aligned Insurance, we understand the specific risks associated with different contracting professions. Our expert brokers will ensure your Contractors Pollution Liability Insurance policy is tailored to meet your business’s unique needs and provide peace of mind in a world where environmental concerns are increasingly at the forefront of business liability.
Get a quote or contact one of our experts today to discuss how we can help protect your business against pollution-related risks.
