Contractor Pollution Liability Insurance: Protecting Against Environmental Risks

Written By Charlotte Insurance on August 8, 2023. It has 0 comments.

Contractor Pollution Liability Insurance Protecting Against Environmental Risks

If you work with hazardous materials in any way, shape, or form, you run the risk of accidentally creating an environmental catastrophe. What happens if that fertilizer spills all over the road? Or if the used oil that you’re transporting to a disposal facility ends up spilling into a river or other local waterway? You could end up with quite a bill on your hands, thanks to the EPA fines and cleanup costs.

In order to protect your business, you’ll need contractor pollution liability insurance in place. This policy used to be part of a standard business owner’s policy, but is now its own separate plan.

What is Contractor Pollution Liability Insurance?

As the name implies, contractor pollution liability insurance is designed to provide some protection should your business accidentally end up creating an environmental hazard. This insurance is an additional policy, adding to any other insurance policies that you already have on your business.

If you haul or use anything that is considered hazardous or could cause an environmental problem, then you should have one of these policies in place, just in case. Something as seemingly simple as fertilizer that you apply to lawns can be considered hazardous if it spreads to the wrong place or irritates someone’s eyes.

While there are plenty of hazardous chemicals and substances that are listed as such, keep in mind that even these trivial things, like the examples above, might run you into trouble with the law and EPA. Having contractor pollution liability insurance in place is always a good idea.

What Does This Type of Insurance Cover?

Although things can vary based on your specific insurance policy, for the most part, contractor pollution liability insurance covers the following things:

  • Legal Costs – If you accidentally cause environmental damage, you could find yourself having to pay for a defense attorney, among other things. Most contractor pollution liability policies cover legal costs, preventing your business from having to pay for these things out of pocket.
  • Cleanup Costs – Large spills can be expensive to clean up, as can small ones, depending on the chemical. Thankfully, contractor pollution liability insurance often covers the costs of these professional cleaning efforts.
  • Damage to Property – Any property that gets damaged due to hazardous materials will need to be taken care of. Paying for repairs, any destruction, or anything related to property damage is often thankfully covered by insurance.
  • Personal Injury – Did someone get injured due to the chemical or hazardous materials spill? Or did an accident occur during your fertilizer application? If so, your business may be responsible for medical costs and related bills.

Have Questions? Contact Charlotte Insurance

Do you think your business would benefit from carrying contractor pollution liability insurance? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the customized coverage plan that you need.

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