Pollution Liability Insurance
Construction companies and other contractors working with hazardous chemicals face unique liability risks. Their work may affect neighboring properties or spill toxic chemicals into ground water or the air. Coverage for pollution-related incidents is currently excluded from general liability insurance policies. Most insurance companies allow you to purchase a policy to cover all of the company’s operations or project-specific coverage for a limited period of time.
Pollution liability insurance typically cover personal injury and property damage. Companies may also be covered for clean-up and removal costs to and to restore the property to usable condition. Some insurance companies also include coverage for legal fees and investigation costs involved in pollution-related incidents. This usually requires a rider to your policy and an additional premium to compensate for the increased risk.
Contractors may need such coverage when working with utilities such as water lines or sewers. Other businesses that should also purchase pollution liability insurance if your company produces emissions, such as a farm or truck stop, HVAC installers, excavators, landscapers and other subcontractors.
Your coverage is limited by the terms of the policy. You may have a per person limit and an aggregate limit for an entire incident. There will also be a deductible that you must pay out of pocket before any insurance coverage starts. Increasing your deductible and out of pocket exposure will typically reduce your premium costs.
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