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August 24, 2021

Liability Insurance: Contractor’s Pollution Liability

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Regular construction activities can result in sudden, accidental, or gradual pollution conditions.

These can cause physical injury, damage property, require cleanup, and result in legal defense costs. Contractors pollution liability (CPL) insurance offers coverage for these circumstances.

Environmental risk can vary by contracting activity. High risk activities include dirt work (excavation, paving, landscaping), drilling, moisture protection (roofing, sealants, siding), mechanical, electrical, plumbing, demolition, and any building envelope work.

Coverage can vary from emergency response cost coverage to catastrophic loss scenarios, and is available on a project or blanket basis. 

If your business does dirt work and excavation, you should consider a policy that covers the accidental disturbance or release of naturally occurring hazardous substances (NOHS) such as arsenic, asbestos, mercury, radon, pyrite, and silica. For example, if you excavate and remove fill material, it could include a mineral that contains one of these substances—exposing workers as it’s removed and again as it’s placed elsewhere.

Whether you have a contractual requirement, want to protect your company’s assets, or need protection from major loss events like mold and fungi, the specialists at Koch Insurance Group understand the complicated coverage options in the contractors pollution liability market. We can help you find the type and amount of coverage that offers the best protection for your company.

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