Are you a contractor, works in construction or manufacturing? Do you own commercial property that could be an environmental risk, such as a gas station? Chances are you may be working with heavy machinery, chemicals, or on land that has the potential to harm the environment.
Once considered a niche market, pollution liability coverage is becoming a must-have in the construction and manufacturing industries and for commercial property owners that face the risk of spills and potential damage to the environment. And your common general liability (CGL) coverage probably doesn’t cover this.
It’s important to consider your environmental impact when purchasing insurance and understand what exactly is and isn’t covered under your CGL. At isure, our brokers understand the risks that come along with your trade and can tailor pollution liability insurance for better coverage.
THE DIFFERENCE BETWEEN COMMON GENERAL LIABILITY AND POLLUTION LIABILITY
A Common General Liability is the foundation of insurance for construction workers, contractors and manufacturers. It protects from third-party claims for bodily injury or property damage. CGL makes sure you are protected while work is being done and after it is completed.
However, most CGL policies are not designed for complex environmental issues and do not protect against pollution claims, often referred to as “absolute pollution exclusion.” There are a couple of exceptions. Contractors may be covered if the environmental contamination causes bodily injury or the property damage is covered under the CGL policy, or if the environmental damage happens during the completed operations period. Some insurers provide limited pollution coverage on the CGL policy if there is a “sudden and accidental” event.
THIS LIMITED COVERAGE LEAVES A LOT OF UNCOVERED AREA WHERE YOU ARE NOT PROTECTED. THAT IS WHY POLLUTION LIABILITY INSURANCE IS AN IMPORTANT ADDITION TO YOUR CGL POLICY AND GENERALLY COVERS:
- Sudden and accidental or gradual pollution events
- On-site and off-site bodily injury, property damage, and clean up costs related to pollution conditions
- Mould, asbestos, and fungi coverage. Demolition operations are particularly vulnerable to the accidental spreading of asbestos.
- Business interruption related to pollution, such as any delay costs
- Civil fines and punitive damages in the definition of loss
CONTRACTORS POLLUTION LIABILITY
Contractors Pollution Liability is an insurance solution specifically for contractors on a practice, project, or excess basis. isure offers coverage for direct damage or third party environmental damage and clean up caused by pollution conditions resulting from the performance of work.
POLLUTION LIABILITY FOR PROPERTY OWNERS
Even if you’re not in the construction or manufacturing industries, pollution liability coverage may come in handy. If you’re a commercial property owner of land that might be environmentally risky (such as a gas station or near old railroad tracks), or near “sensitive environmental receptors” (such as rivers or wetlands), conduct an environmental site assessment and provide it to your insurer to customize your coverage.
Even operations that seem low-key face risks. Bakeries and fast food restaurants that have tanks of vegetable oil on-site need to have plans in place to contain and safely remove the oil and avoid spills.
The key to avoiding unnecessary costs and unintentionally harming the environment is to work with an insurance broker who identifies and understands risks to find appropriate coverage solutions. Contact us at isure to discuss your CGL and pollution liability coverage today.
If you are interested to learn more about isure’s unique suit of insurance solutions for contractor and builders click on this link.