Coverage Guide: Non-Environmental Contractors

Non-environmental businesses face multiple environmental risks stemming from their daily operations. Whether these actions create a pollution condition or aggravate an existing one, the non-environmental contractor can be held liable in the event of a claim, which their standard CGL coverage typically would not cover. There are many different types of pollution conditions that may be encountered. Proper coverage can be easily purchased to address the issues of job site pollution, in-transit spills, aggravation of an existing pollution condition, water damage leading to a mold condition, and potential restoration costs for surface water or soil, to name just a few.

We understand that pollution coverage is not usually an easy sell. Most non-environmental contractors do not believe they have an exposure and are not required to carry this type of coverage. They often don’t see the importance of making it part of their insurance program until they have a claim denied under their GL policy. Additionally, most GL policy forms include the absolute pollution condition exclusion, so no coverage or defense is provided.

To address this gap, two common coverage approaches are presented below:

Annual Practice Policy:
This option is based upon the applicant’s total gross revenue for the year and covers all projects performed during the policy term.

Project Specific Policy:
This option is available when a specific project the contractor is bidding for requires pollution liability coverage. Rating is based upon the gross revenue generated from that specific project, as well as the scope of work and anticipated project duration. Read More.

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