What is Contractors’ Pollution Liability?

Contractors’ Pollution Liability (CPL) insurance provides financial protection against environmental risks and pollution-related incidents. It is essential coverage for contractors involved in industries where pollution and environmental liabilities are a concern, ensuring safeguards against unforeseen environmental liabilities.

Why do I need it?

Most contractors are unaware that general liability policies typically contain a pollution exclusion, which excludes bodily injury or property damage arising from the release of a pollutant. Therefore, a Contractors’ Pollution Liability (CPL) policy is vital for contractors facing exposure to incidents related to the unforeseen release of a hazardous pollutant.

Pollutant, as defined in the policy, encompasses an array of substances, including irritants or contaminants in solid, liquid, or gaseous form. These may include smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.

This coverage is essential for the following reasons:

Business Protection – The primary purpose of contractors’ pollution liability is to defend businesses against lawsuits and claims arising from pollution incidents, including:

• Environmental Cleanup – Costs associated with the cleanup of pollutants released during operations.
• Third-Party Bodily Injury – Claims from third parties who suffer injury due to pollution caused by your operations.
• Third-Party Property Damage – Claims for damage to property belonging to others caused by pollution incidents.
• Legal Defense Costs – Expenses related to defending against pollution-related claims and lawsuits.
• Regulatory Fines and Penalties – Costs from governmental regulatory actions due to environmental damage.

Company Compliance – Many project owners, particularly in environmentally sensitive projects, require a valid certificate of pollution liability insurance before permitting work to commence.

Marketing Benefits – Providing evidence of pollution liability insurance assures clients and partners that you are responsible and prepared for environmental contingencies, giving you a competitive edge in securing projects.

What does it Cover?

The policy covers the cost of legal defense and damages up to the policy limits if you are held liable for causing pollution-related incidents. It protects business owners from unexpected expenses relating to:

• Pollution Cleanup – Covering the cost of cleaning up pollutants released during your operations.
• Bodily Injury – Claims arising from bodily injury to third parties due to pollution.
• Property Damage – Claims arising from damage to third-party property caused by pollution.
• Post-Construction – Pollution incidents that occur after project completion that are related to your work.
• Natural Resource Damages – Claims related to the destruction or contamination of natural resources.

What is a Certificate of Insurance?

A certificate of insurance (COI) is an official document that verifies a pollution liability policy’s existence, coverages, and limits. Project owners and regulatory bodies often require it.

What is an Additional Insured?

An additional insured (AI) is a person or organization other than the policyholder covered by the insurance policy. Project owners and other stakeholders commonly request this endorsement to ensure they are protected under your policy.

How much is it?

Contractors’ pollution liability rates are calculated based on the nature of the work performed, claims history, territory, and prior or continuous coverage. Our team of experts will shop your quote with the nation’s leading wholesalers to find the best coverage that fits your budget and business needs.

What are my Payment Options?

Our programs offer various payment options when purchasing your contractors’ pollution liability policy.

• Full Payment Option – Pay the premium with one payment.
• Direct Bill Option – Pay the monthly premium directly to the carrier.
• Financing Option – Pay the monthly premium through a finance company.

Why Fairbanks for Contractors’ Pollution Liability?

Why choose Fairbanks for Contractors’ Pollution Liability? At Fairbanks Insurance Brokers, our expertise is dedicated exclusively to the construction industry. Our years of relationship-building with the nation’s leading environmental insurance providers afford us access to the most sought-after insurers, enabling us to offer you the highest-rated coverage at fiercely competitive rates. You can count on us to deliver the tailored protection your business needs to continue thriving in an environmentally conscious marketplace.