Contract and Jobsite Exposures: Pollution Liability

Contract and Jobsite Exposures: Pollution Liability

by Proforma Construction Inc, May 2, 2016

Pollution is something that is not taken lightly anymore, so be sure your job site follows regulation.

Pollution liability insurance has been available for more than 15 years, so why is it that more subcontractors are not purchasing this kind of coverage? Pollution claims are not covered by general liability policies, and they start at less than $5,000 a year for $1,000,000 in coverage. Pollution liability will protect you and your construction company from the heavy fines or legal cost associated unanticipated issues or accidents resulting in a pollution claim.

Pollution Insurance Coverages

Contractors Pollution Liability (CPL) is a coverage available to any kind of contractor. This kind of insurance can be bought on a per-project quota, or a blanket program. The definition of a pollutant is broad and typically includes soot, smoke, fumes, acid, vapors, alkalis, waste, and chemicals. Coverage for mold, and naturally occurring hazardous substances (like mercury, asbestos, etc.) clean-up expenses are also available.

Commercial General Liability (CGL)

The vast majority of general liability coverage have what is known as absolute pollution exclusion (to our knowledge, they were not poets). The exclusion is very strict in what it includes and what it doesn’t. Any bodily injury, or property damage that was caused, or “alleged,” by the pollution (meaning solid, liquid, or gaseous thermal irritant/contamination, including all names above) will not be covered by the insurance company, which why a CPL is very important to have. This exclusion is routinely cited by attorneys when denying coverage for pollution claims.

When looking for a general contractor in the Bay Area, we encourage you to contact Proforma Construction. We have a team of professionals who are equipped to meet all of your commercial construction needs and exceed all of your expectations. Whether you need a Pleasanton contractor or have a project in the surrounding California area, we’re here! Call us today to see what our services can do for you.