Protect Your Contractors From Pollution Liability

This article has been reposted from this website.


Pollution risks come in many forms and protecting one’s business from exposure is essential.  Unbeknownst to some contractors, Commercial General Liability (CGL) policies do not protect against pollution due to the Total Pollution Exclusion Endorsement.  Coverage is excluded in the event of “Bodily injury or property damage which would not have occurred in whole or part but for the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time.” – CG 21 49 09 99 – Insurance Services Office, Inc., 1998


Contractors Pollution Liability (CPL) provides third-party bodily injury, property damage and cleanup coverage for unintentional pollution caused by covered operations performed at job sites that are not owned or occupied by the named insured.  CPL may be written on either a claims made or occurrence form, depending on the exposures.  According to IRMI, over 40 markets offer CPL which can be written in combination with a General Liability policy or as standalone coverage.

Sample classes include:

  • General trade contractors and subcontractors (including mold)
  • Demolition
  • Drilling
  • Emergency response
  • Energy, oil & gas services
  • Environmental consultants
  • Fire, water and disaster recovery/restoration
  • Medical & infectious waste disposal
  • Pipeline, construction & maintenance
  • Polychlorinated Biphenyl (PCB) remediation
  • Service station construction
  • Soil remediation
  • Underground storage tank (UST)/Aboveground storage tank (AST) contractors