Pollution Liability Coverage

On Point.

Pollution Liability Coverage is an overlooked, but critical coverage – especially if you are in the construction business.

When you work with hazardous materials, or in an environmentally sensitive environment – chances are there is a risk of pollution. Pollution Liability Coverage protects your company for potential damages caused by the equipment or materials that you work with. Without this coverage, a minor disaster could be the beginning of the end for your business – especially when it comes to environmental restoration and other related municipal law suits.

In the event that there is either a gradual or abrupt pollution event on an insured job site, your Pollution Liability Coverage can cover property damage, environmental damage, and third-party bodily injury that may result.

Pollution Liability Coverage typically provides protection against claims related to:

Transportation exposure when unloading or loading.
Environmental damage.

Environmental damage.
Clean-up costs.

Civil fines, penalties, or settlements.

Which business are you?

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Can you give me a few examples of Pollution Liability Coverage in action?

Three examples where your Pollution Liability Insurance coverage steps into action include:

1

You are contracted to remove mold within a building. Due to oversight, some of the mold is left behind during removal and a few years after your visit, the mold has grown and resulted in the decrease of air quality for the entire building. As a result legal action has been filed against you for both property loss and bodily injury.

2

You own a construction company that is developing a new building. During the weekend, while nobody was on the job site, there was a substantial fuel leak from one of your on-site storage tanks. The impact halts all site work, creates an outcry for an environmental assessment – and at minimum, the additional costs for clean-up.

3

You own a construction company that is developing a new building. During the weekend, while nobody was on the job site, there was a substantial fuel leak from one of your on-site storage tanks. The impact halts all site work, creates an outcry for an environmental assessment – and at minimum, the additional costs for clean-up.

How is the cost of Pollution Liability Coverage determined?

The cost of a Pollution Liability coverage is largely determined by the size of your business and its category. Depending on your provider, Pollution liability coverage may require a separate purchase as it will not generally be included with your Commercial General Liability policy. Your cost for Pollution Liability Coverage is calculated by assessing several factors – including:

Certification and Licensing.
Years of experience in the given industry.
The services you provide.
Past liability claims.

Your team and their expertise.
Annual and projected yearly revenue.
Where you operate.

What if my business needs additional types of liability coverage?

Business owners can extend their existing Pollution Liability Coverage with a Commercial Umbrella Insurance policy. This will extend existing maximum policy limits, allowing your insurance company to cover you for more expensive, or extensive lawsuits.

If your business is exposed to additional liability risks beyond what a general liability insurance policy can cover, you can acquire separate liability policies that are available.