For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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.
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.
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.
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
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
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
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.
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
Below is a comprehensive list of contractors who NEED to start a contractors pollution liability application process:
Contractors who own above and underground storage tanks that contain hazardous substances or materials
Electrical and mechanical companies
Emergency spill response companies
Environmental remediation companies
Grading, site and excavation companies
Homebuilders and developers contractors
Sewer, waste and utility contractors
Street and road contractors
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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:
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.
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.
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.
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
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.