JULY 27, 2020
Do You Need Pollution Insurance?
Don't Find Out Hard Way!
BY ALEX, QUEEN BEE
Many contractors work with hazardous substances on sites that are on or near public property such as water pipes, lakes and schools. And while they carry insurance, they may not be covered in the event of a pollution incident. Because lawsuits concerning pollution relate to public health hazards, they are incredibly expensive. Therefore, without the right coverage, a contracting company or individual contractor could lose thousands of dollars and possibly even go out of business.
Different Types of Pollution
Anything that contaminates or disturbs the natural world around it such as pesticides, asbestos, construction debris and so forth, is considered pollution.
There are four types of pollution incidents that threaten environmental or public safety. These are:
1. Pollution from Operations related to construction. Construction is particularly dangerous when it comes to pollution. Excavation, drilling, chemical spills and the agitation of natural dangers such as asbestos are all incidents that may occur while a contractor is working on a large project.
2. Pollution from Commercial Property. This relates to pollution that can arise from the equipment and supplies owned by the contractor, such as leaks and oil or fuel spills.
3. Pollution During Transportation. Contractors travel frequently for work purposes and often carry equipment and chemicals. An accident involving these, such as chemical or fuel spills during transport, can cause a large amount of damage and injury.
4. Improper Disposal. Contractors have a duty to properly dispose of hazardous waste and materials. If a contractor fails to do so, they may be sued for any damages or injury the waste causes.
General Liability Insurance Does NOT Cover Pollution. General liability insurance is a basic policy that covers accidents of bodily injury, property damage and other injury related to professional negligence. It does not cover claims regarding pollution.
How Much Pollution Coverage Does a Contractor Need? The amount of coverage needed depends on the scope of the business. In general, most basic pollution liability policies start at $1 million. Contractors that consistently work on large construction projects or transport hazardous materials may need higher limits of pollution liability coverage.
Contractors involved in demolition, general contracting, waste and excavation may need more pollution insurance than lower risk contractors.
How Much Does Pollution Insurance Cost? Premiums vary depending on a variety of factors, including:
• Size of the business
• Claims history
Pollution insurance typically can range between $3,500 and $7,500 a year (from $300 to $625 a month)*. A larger deductible may mean lower monthly premiums, but it will also mean paying more out of pocket for a claim. Larger businesses generally pay more for insurance.
Your agent knows your exposure to risk. A great agent is someone who is genuinely concerned and invested in protecting your best interests. They aren’t worried about competing to give you the best deal on cut-rate coverage, knowing full well that coverage you are missing out on from a better plan is much more suited to fit your business needs. Establishing a relationship with your agent means finding someone who can connect the dots between your assets and liabilities to determine how to mitigate your risk.
All contractors face a certain amount of risk when it comes to pollution. Contractors should speak with their insurance agent about finding an affordable pollution policy tailored for the business’ specific pollution liability risks.
Because lawsuits concerning pollution relate to public health hazards, they are incredibly expensive.
* This blog post is meant purely for discussion about insurance products and services. Consult your insurance agent if you have any specific questions.home improvement service miami, affordable handyman services miami, residential home maintenance services miami Email: