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Clearing the Air about Pollution Insurance

Pollution insurance? Who needs it? If you’re just about any type of contractor, you probably do.

The word “pollution” conjures up images of huge smokestacks belching contaminants into the air, or factories draining waste into nearby bodies of water. That’s not us, you say.

But change the word “pollution” to “contamination” and you begin to see the broader picture, and why most contractors are in the frame. You don’t have to be generating toxic waste to have a pollution liability exposure.

In fact, pollution exposures can run the gamut from disturbing asbestos to striking underground tanks or utilities, from water intrusion that leads to mold to spills or vapors generated by equipment. In other words, just about every contractor has some type of pollution liability exposure. And while claims are infrequent, they are usually of high severity. That’s why there’s Contractor Pollution Liability (CPL) insurance.

Policies vary widely and contain far more options than in decades past, but essential coverage will cover third-party bodily injury, property damage, defense and remediation as a result of pollution conditions that arise from the insured’s contracting operations at a jobsite.

Common options include coverage for cleanup of materials being transported and coverage at a contractor’s owned location. There are many additional options covering exigencies from emergency expenses to additional defense costs.

In other words, one size definitely does not fit all when it comes to CPL insurance. Talk to an advisor who will take the time to understand your specific exposures and tailor coverage to your needs. But don’t ignore your need for CPL coverage.

Questions about Contractor Pollution Liability (CPL) insurance or other insurance matters? Contact Consolidated Insurance.