What Is Pollution Liability Insurance?


Contractors who are involved in certain specialized services like road construction and demolition are often exposed to various environmental exposures. Pollution liability insurance is a policy that protects such contractors from third-party claims on body injury, property damage and environmental damages caused by pollution conditions that are a result from the work performance.

Pollution liability insurance is available to general contractors, subcontractors, project owners, construction managers and storage tank installers. The policy benefits include protection from any sudden or gradual pollution conditions that are a result of covered and completed operations and also include over-the-road pollution protection. Disposal sites and contractor property are also covered. Coverage is available for claims made, usually on an occurrence basis. The policy also protects the company from liability that may arise from hazardous waste materials. It is an essential policy for businesses that are involved in hazardous waste emissions when manufacturing, including agribusiness, excavation, asbestos, oil and waste depository businesses. The policy goes as far as covering clean-up costs that may be caused by contamination of toxic waste materials. The policy can be purchased from most insurance companies, with the price varying depending on the amount of coverage desired. According to AIG, the current available coverage limit for the policy is $50 million.