Contractors, no matter what industry they work in, face environmental risks stemming from operations on a daily basis. For most contractors, a single pollution incident or loss can seriously damage their operations, balance sheet and even reputation. Making matters worse, pollution incidents can be sudden or occur gradually over time.
Here’s how Contractors Pollution Liability Insurance can help protect you:
Contractors Pollution Liability Coverage Basics:
CPL policies provide contractor-based insurance for third-party coverage for bodily injury, property damage, defence, and cleanup as a result of sudden and gradual pollution incidents arising from contracting operations performed by or on behalf of the contractor.
CPL insurance is intended to provide coverage to all types of contracting operations, including contractors who are involved in building construction and environmental firms that remediate polluted sites.
CPL policies are offered on either a claims-made or occurrence basis. What’s more, CPL policies are non-standard, meaning each policy is different and can be modified to cover the various needs of the contractor purchasing the policy. Policies can be offered on a project or blanket program basis.
In some instances, CPL policies can also be used to cover losses from civil fines, penalties and punitive damages.
Covered Pollution Incidents:
Contractors should keep in mind that CPL insurance policies differ in regard to the types of pollution incidents that are covered. Two important considerations when evaluating CPL insurance policies are:
- Whether or not the policy will respond to gradual releases of pollutants, as opposed to sudden and accidental releases; and
- The types of substances that are considered “pollutants” under the terms of the policy.
Generally, policies that cover both gradual and sudden releases of pollutants provide contractors with a broader scope of coverage.
In addition, policies that provide a broad definition of pollutants are considered superior to those that contain a narrow definition. Accordingly, it is important that contractors work with their broker to find a CPL policy that is tailored to their needs.
Find out more:
Assessing your exposures and taking the appropriate precautions can go a long way toward protecting your business. Download our “Contractors Pollution Liability Insurance” guide for an in-depth list of more ways to minimize gaps in your risk management:
