Contractors Pollution Liability Insurance: Cost & Quotes From $83/mo

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Environmental pollution can be a problematic liability. Contractors pollution liability insurance is a must if you’re constantly working with dangerous chemicals. You can also leverage this if you do demolition projects. You can find this policy included in general contractor insurance programs and other related insurance solutions. Join this discussion to get acquainted with everything you need to know about contractors pollution liability insurance definition, the cost of premiums, and more. 

What is Contractors Pollution Liability?

The contractors pollution liability is abbreviated as CPL. Contractors pollution liability coverage is a comprehensive insurance that protects contractors against any claims in the event of unintentional pollution that may be of sudden or gradual nature at a client’s site(s).

These environmental damages MUST result from pollution conditions that are caused by the performance of the covered activities or operations as defined in the CPL policy. Third-party claims from bodily injuries and property damages directly caused by the performance of the covered activities or operations as defined in the CPL policy are also some of the covered losses.

Important to note is that this essential policy is contractor-based, that is contractors can purchase it either as a claims-made or occurrence basis. Contractors can also purchase this policy on a project-specific basis with the coverage reporting terms being extended up to 5 years.

This policy’s coverage becomes effective when materials that are to be used in completion of a project or activity are brought on the client’s site. Upon removal of the materials, this cover gets terminated. It’s essential for every policyholder to know that even a CPL policy has limits on how much the insurer gets to pay in the event a pollutant is released on a client’s site.

It’s important for a policyholder to fully understand the main components of a CPL policy, which are the coverable pollution incidents and whether or not the CPL policy covers either a sudden, gradual, or both sudden and gradual unintentional release of a pollutant.


What Types of Exposure for Contractors Does the Pollution Liability Insurance for Contractors Cover?

Exposure to Owned Premises

These are pre-existing risks that a site owner is subjected to. Leakages from above or underground storage tanks and contaminations from spills are some examples of owned premises exposures.


Exposure Due to Operational Activities

These are risks that come about as a result of the activities performed on a site. Unearthing naturally occurring asbestos and spreading unknown pre-existing contaminated soil are some of the risks associated with operational exposures


Transportation Exposures

These are risks that may occur during the movement of hazardous materials from the working site to the designated disposal site. Spills caused by reckless driving, vandalism, and pollution of the environment due to the collision are some of the transportation exposure risks


Disposal Exposures

These are any risks that may occur during the disposal of hazardous materials. Dumping debris on undesignated areas and the negligent throwing of oil or paint are some of the risks under this type of exposure


Is a Contractor’s Pollution Legal Liability the Same as Contractors Pollution Liability?

No, contractors pollution legal liability insurance is NOT the same policy as a contractors pollution liability. While a contractor’s pollution legal liability only covers any damages caused by unintentional pollution on a site OWNED by the policyholder, the contractors pollution liability covers the policyholder’s client site and not their own site.


What Are the Commonly Used Contractors Pollution Liability Terminologies and Their Meanings?

Below is a list of the commonly used terminologies in a CPL policy and their meanings in insurance:

  • Bodily injury–this refers to any job-related sickness, physical harm or death

  • Cleanup–this are the activities undertaken to remove a pollutant or a contaminant out of the affected site

  • Legal defense–this is cost that is incurred during a judicial or court process following a lawsuit by a complainant wanting to be compensated for a cost covered by the pollution liability insurance for contractors.

  • Property damage–this is defined as any physical destruction to any tangible property such as a building or an automobile

Who Needs Contractor’s Pollution Liability Insurance?

Below is a comprehensive list of contractors who NEED to start a contractors pollution liability application process:

  • Abatement companies

  • Airport fueling

  • Contractors who own above and underground storage tanks that contain hazardous substances or materials

  • Demolition companies

  • Electrical and mechanical  companies

  • Emergency spill response  companies

  • Environmental remediation companies

  • General contractors

  • Grading, site and excavation companies

  • Homebuilders and developers contractors

  • HVAC companies

  • Maintenance companies

  • Marine

  • Pipeline contractors

  • Plant operations

  • Roofing companies

  • Sewer, waste and utility contractors

  • Street and road contractors

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Why It’s Important to Purchase Contractors Pollution Liability Insurance?

Below are some of the reasons that makes the purchase of contractors pollution liability insurance important to contractors and other business stakeholders who deal with environmentally degrading materials:


It’s a Contractual requirement

All contractors and firms dealing with hazardous materials are obligated by the law to purchase a contractors liability insurance policy before commencing on their stipulated job descriptions in their designated area of work.


It Helps Protects Ones Assets

Financial claims are not only ‘messy’ but they are also costly, more so if your firm is large. To protect both business and personal assets, its only reasonable that you purchase a CPL policy.


Helps to Keep Your Firm Up and Running in the Event of a Loss

It’s a fact, that every day, our businesses are faced unprecedented risks, which may bring it crumbling down in a matter of seconds. It’s important that one comes up with an ideally bulletproof strategy in the event of losses that are caused by the unprecedented risks. Fortunately for contractors who deal with hazardous materials, such risks that may cause a sudden and complete stoppage of their firm’s activities can be easily mitigated by purchasing a contractors pollution liability insurance cover.


In What Situations Can You Use Contractor’s Pollution Liability Coverage?

Below are some of the circumstances that may necessitate one to use the contractors pollution liability insurance:

  • In the event of a storage tank leaks and releases hazardous materials into the soil or water reserves

  • In the event, a contractor releases toxic fumes during excavation

  • In the event, an HVAC company releases airborne bacteria into their environment during maintenance

  • In the event, a petroleum product gets spilled during transportation

  • In the event, a demolition company wants to dispose of asbestos containing wastes

  • In the event, a street and road company wants to use a bio-hazardous material

  • In the event, a plant operation blows up

  • During an abatement project

What Are the Usual Coverage Limits of Contractors Pollution Liability Insurance?

A coverage limit is the highest sum of money an insurer will give or pay you upon the claiming of your insurance policy. In accordance with the International Risk Management Institute recommendations on coverage limit, an insurer should provide approximately a coverage limit of $500,000 to $1,000,000 for every $10 million in annual revenue that the contracting company generates.




Contractor’s Pollution Legal Liability Insurance

Abbreviated as PLL. The contractors pollution legal liability insurance is also known as site-specific pollution liability. This complex policy, with elements that can be tailored to suit the needs of the policyholder, typically covers damages that occur as a result of unintentional pollution on a site owned by the policyholder.

Given the customizable nature of this essential coverage, its covers vary greatly between insurers. It’s possible for a policyholder to have their PLL tailored to cover both on-site and off-site liabilities, cleanup costs, bodily injuries and property damage resulting from both new and pre-existing pollution conditions. Other coverages under this policy include:

  • Unidentified pre-existing contamination from previous release of pollutants

  •  Unintentional release of bio-hazardous materials and substances

  • Storage tanks of the policyholder

  • Transporting or getting rid of the dangerous items

Note that the site owner’s employees who sustain injuries due to contractor-caused incidents or accidents are NOT covered under this contractors pollution liability policy.

It is important to note that the specificity of this policy in regard to what it covers and what it does not cover is directly determined by the risks associated with a client’s business. For instance, it’s possible that a policyholder purchases a pollution legal liability insurance policy that doesn’t cover first-party clean-up costs. 

Thus, its best for any client seeking to seek an expert council from a reputable insurance agency or company. By doing so one is guaranteed to purchase a policy that will best suit their organization’s needs. 

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Cost of Contractors Pollution Insurance

Contractors pollution liability insurance is $208-$416 per month or $2,500-$5,000 per year for a $1 million worth of coverage. There are a number of factors that are put into consideration by an insurance company before providing one with the cost of a contractors pollution insurance. It’s advisable that you first get acquainted with these factors below before you commence on contractors pollution application.

  • What type of a contractor you are-Either a general, specialist or a design-build contractor. Each type of contractor has different levels or risks

  • What activities or work you intend to carry out on your designated site

  • What type of pollutants you as the contractor will be dealing with

  • A contractor’s financial history

  • A contractor’s insurance claim history

  • Coverage limits of the insurer

Here’s a table showing the rates of companies we recommend:

Cost per Month Cost per Year Best for
CoverWallet $150 – $1,000 $1,800 – $12,000 Comparing contractors pollution liability insurance quotes online
NEXT $200 – $1,000 $2,400 – $12,000 Best overall; Fastest contractors pollution liability insurance
Tivly $200 – $1,000 $2,400 – $12,000 Comparing contractors pollution liability insurance quotes over the phone
Hartford $200 – $1,500 $2,400 – $18,000 Contractors with a good safety record
Hiscox $250 – $1,000 $3,000 – $12,000 Contractors with higher risk of pollution, such as hazardous waste
Thimble $50- $300 $600 – $3,600 Freelance and gig economy contractors

Compare Cheap Contractors Pollution Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Companies for Contractors Pollution Liability Insurance

Below is a list of some of the highly companies to purchase your contractors pollution liability insurance. Read some of the reviews below to know their pros, cons, and average cost.

 

NEXT Contractors Pollution Liability Insurance

Pros

  • The company has an A+ rating, which means it is financially stable and reliable.

  • Offers insurance that is fast, cheap, flexible, and easy to customize.

  • Customers gave it a high rating, which means they liked it.

Cons

  • Couldn’t find any

NEXT is an A+ rated company that offers its policyholders with fast, discounted, customizable and affordable insurance covers.

Best for: Best overall; Fastest contractors pollution liability insurance

Average cost: $200 – $1,000 per month

Our rating: 10/10

CoverWallet Contractors Pollution Liability Insurance

Pros

  • There is an online platform that gives free quotes and more than 30 different kinds of insurance.

  • Online system that makes getting insurance easy and convenient.

Cons

  • There isn’t much knowledge about how strong and stable the company’s finances are.

  • Some customers might prefer to work with a standard insurance broker because they can get more personalized service that way.

CoverWallet is an online insurance cover that offers its clients with FREE quotes and over 30 different insurance.

Best for: Comparing contractors pollution liability insurance quotes online

Average cost: $150 – $1,000 per month

Our rating: 9/10


Hiscox Contractors Pollution Liability Insurance

Pros

  • Insurance company that is well-known and trusted around the world.

  • Offers free quotes and discounts of 5% to both new and old users.

Cons

  • Different places and types of policies may have different coverage choices and discounts

  • Some customers may think that the rates are higher than what they would pay with other insurance companies

Hiscox is internationally recognized and situated insurance company is regarded as one of the best insurance provider due to its provision of 5% discount incentives and FREE quotes to both its new and pre-existing customers.

Best for: Contractors with higher risk of pollution, such as hazardous waste

Average cost: $250 – $1,000 per month

Our rating: 8/10


Thimble Contractors Pollution Liability Insurance

Pros

  • There is an online insurance firm that sells 10 different policies

  • Monthly premiums can be paid in different ways, and coverage can be put on hold without any bad effects

Cons

  • There isn’t much knowledge about how strong and stable the company’s finances are

  • Options for coverage and prices may not be right for all workers

Thimble is an online insurance agency that provides its clients with 10 different insurance policies. The best thing about this insurance agency is its flexibility when it comes to paying its premium rates. One can pause their monthly coverages without any negative repercussions.

Best for: Freelance and gig economy contractors

Average cost: $50- $300 per month

Our rating: 8/10


The Hartford Contractors Pollution Liability Insurance

Pros

  • A well-known advisor on insurance with 200 years of knowledge

  • Offers discounts on different plans and is known for having the best customer service in the industry

Cons

  • Depending on where you live and what kind of insurance you have, discounts may or may not be available

  • There isn’t much information about the policies and coverage choices

The Hartford is found in all the 50 states of USA, this dedicated insurance advisor with 200 years’ of experience provides its customers with dozens of discounts on different policies. It’s best known for its unrivaled customer service experience.

Best for: Contractors with a good safety record

Average cost: $200 – $1,500 per month

Our rating: 8/10


Tivly Contractors Pollution Liability Insurance

Pros

  • Private insurance company you can trust and has a lot of experience

  • Offers free quotes and a number of different insurance plans to choose from

Cons

  • There isn’t much knowledge about how strong and stable the company’s finances are.

  • Some customers may prefer to work with an insurance company that is better known and has been around longer

    

Tivly is a reliable, experienced and versatile private insurance company that provides its clients with free quotations and multiple insurance policies to choose from. Call a representative now to get covered. 

Best for: Comparing contractors pollution liability insurance quotes over the phone

Average cost: $200 – $1,000 per month

Our rating: $8/10

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