Contractors Pollution Liability Insurance

Contractors Pollution Liability Insurance

Contractors Pollution Liability Insurance will consider remediation of pollution or contamination from areas such as soil, groundwater, or surface waters. It will provide third party coverage for bodily injury, property damage, clean up and related defence costs associated to an environmentally contaminated event.

Common misconception 1 - I’m only a small Contractor and don’t need Contractors Pollution Liability Insurance.

To some degree this may be true. However, it can be extremely important to consider Contractors Pollution Liability especially depending on the regular activity surrounding hazardous wastes and contaminants.

Common misconception 2 - Contractors Pollution Liability Insurance will only cover for harsh chemical and asbestos contamination to the environment.

Contaminants can also be recognised in the form of solvent based paints, pesticides, batteries, motor oils, vehicle fuels and pool chlorine.

It must also be integral to understand that Contractors Pollution Liability will need to be triggered by events sudden and unforeseen or gradual in nature and can be from any of the example contaminants mentioned above.

Common misconception 3 - I have Public & Products Liability and am appropriately covered for any environmental liability exposure.

Times have changed and insurers have now evolved in line with risk and exposure. Historically it could be understood that a general liability policy may have catered to pollution liability, however many policies today can contain exclusions on coverage when it comes to contaminants or pollutants arising from business operations.

Contractors Pollution Liability Case Example

A subcontractor incorrectly installs a sewerage pipe resulting in raw sewage contaminating groundwater and nearby residential properties.

Injury and property damage claims were filed against the subcontractor. The builder had to indemnify third parties and pay defence costs exceeding $425,000.