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:
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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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.
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.
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 |
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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.
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.
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
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.
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
Insurance company that is well-known and trusted around the world.
Offers free quotes and discounts of 5% to both new and old users.
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
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
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
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
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
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
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
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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