What is Pollution Liability Insurance for Construction Companies?
Construction Pollution Liability Insurance is a specialized insurance policy designed to protect construction companies primarily from the financial impacts of sudden and accidental pollution incidents and other slower to develop claims like mould, fungus, asbestos claims etc.
Construction projects can generate pollutants that may contaminate the air, water, and land, leading to potentially hefty cleanup costs and legal issues. This insurance covers the costs associated with managing unexpected pollution during construction projects and work, including both sudden and gradual pollution events.
Is Construction Industry Pollution Liability Insurance Important?
Yes, construction pollution liability insurance is important for construction projects that involve activities with potential environmental impacts. Some examples of when construction pollution insurance would be important include:
- Tearing down older structures that contain hazardous materials like asbestos that can release harmful substances into the environment.
- Excavation/land clearing that disturbs the soil and releases buried contaminants, leading to sediment runoff in nearby waterways.
- Improper disposal of materials, such as paint or solvents, that releases toxic substances into soil or groundwater.
- Equipment leaks and spills, such as oil or hydraulic fluid, that contaminate the construction site and surrounding areas.
Whether you are involved in residential building, commercial construction, or large-scale infrastructure projects, pollution liability insurance is important to manage the risks associated with accidental environmental contamination.
Additionally, pollution insurance can be very important for construction companies as general liability coverage often does not fully cover events related to environmental pollution or excludes them entirely.
What Does Construction Company Pollution Liability Cover?
Construction pollution liability insurance can cover costs related to a pollution incident during covered operations, including:
- Clean up costs
- Legal defence costs
- Third-party claims for bodily injury/property damage
- Civil fines
- Emergency response costs
- Remediation expenses
- Other
What’s the Difference Between Construction Pollution Liability & Contractors Pollution Liability Coverage?
While both policies provide pollution coverage, construction pollution liability insurance is specifically designed for pollution incidents during a project’s construction phases.
In contrast, contractors pollution liability coverage is broader and includes pollution risks associated with the entire scope of a contractor’s operations, not just during construction. It can cover various activities, including covered operations performed by subcontractors, and it may extend to cover certain post-construction operations and accidental environmental damage caused by completed operations.
Align Your Construction Business With Appropriate Construction Pollution Insurance
With construction pollution liability insurance, your business can be equipped to overcome unforeseen environmental issues and expensive liabilities.
At ALIGNED Insurance, we understand the specific needs of the construction industry and offer tailored insurance solutions that align with your project requirements and business objectives.
If you’re ready to protect your business from the potentially disastrous financial consequences of pollution incidents and stay compliant with environmental regulations, get an online quote or contact us for more information.
