Pollution liability is not covered under a general contractor liability policy, creating the need to purchase separate coverage if contractors want to ensure proper protection. Contractors are now beginning to realize the significance of environmental risks and pollution liability is helping them remain ahead of these exposures associated with their line of work. Those in the contracting industry, whether it be general, HVAC, or electrical, can greatly benefit from this protection.
The Protection
While all contractors should carry Commercial General Liability as a foundation, it won’t fully cover pollution or environmental safety claims, as these policies typically have exclusions for third-party injury, property damage, defense, and cleanup costs. Typically, environmental pollution claims are due to unconscious accidents and many contractors do not even realize that they can be held responsible. It is not uncommon for claims to accumulate regarding environmental accidents. Bodily injury, cleanup costs, long-term health coverage, and other liabilities can all result from a contractor pollution liability claim.
Contractor Pollution Liability insurance protects against environmental threats or any type of pollution that could be the result of a contractor’s involvement in a project. A pollutant is anything introduced to an environment that is not natural to the habitat. Even an element that isn’t harmful to humans can still be considered a pollutant. Pollution liability insurance addresses these environmental issues and their impact. Oil, coal, mold, fungi and legionella are just a few environmental hazardous, at-risk substances.
Know Your Risk
As environmental sustainability becomes more recognized as a subject to give attention to, and potential risks to the environment continue to grow, contractors can benefit from knowing their risks are covered if an incident was to occur.
If you and/or your team uses hazardous materials on a regular basis, Contractor Pollution Liability coverage should be a prioritized protection for you. You simply cannot rely on your commercial general liability coverage to provide adequate protection against claims related to pollution.
Even if you are simply transporting materials or providing third party services that do not have relation to pollutants, accidents happen and are far more prevalent than many assume. Just one incident can easily jumpstart legal and financial ramifications. That’s why it is so important to stay on top of your insurance coverage. Pollution exposures can be tricky, so consider letting a pollution liability insurance agent help you protect your business.
About Bozzuto & Co. Insurance Services, Inc.
Bozzuto & Company Insurance Services has provided business and personal insurance solutions to clients throughout California since its founding in 1981. Our experienced staff understands the unique needs that each person has when insuring their lives and their businesses, and we pride ourselves on our deeply personal customer service. We are happy to help you through every step of the insurance selection process. Contact us today at (800) 400-6394 to learn more about what we can do for you.
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