Contractors Environmental Liability
Also called contractors pollution liability (CPL). It is generally intended to respond to third-party claims for a pollution condition arising from your work — a gap that standard general liability typically excludes.
What it is generally intended to address
- ✓ Third-party bodily injury and property damage from a covered pollution condition
- ✓ Cleanup and remediation costs arising from your operations
- ✓ Sudden and gradual releases (subject to the policy form)
- ✓ Defense costs in the event of a covered claim
Because most contractor general liability policies exclude pollution, project owners and general contractors increasingly require CPL before work begins.
Frequently asked questions
What is contractors environmental liability?
Contractors environmental liability — often called contractors pollution liability (CPL) — is generally intended to respond to third-party bodily injury, property damage, and cleanup costs arising from a pollution condition caused by a contractor's operations. Standard general liability typically excludes pollution, which is the gap CPL is built to fill.
Why doesn't general liability cover pollution?
Most general liability policies contain a broad pollution exclusion. For trades that disturb soil, handle chemicals, or can release contaminants, that leaves a significant gap that a contractors pollution policy is generally intended to address. Review your policy and confirm with a licensed insurance professional.
Which contractors typically need it?
Excavation and grading, demolition, environmental remediation, HVAC and mechanical, plumbing, roofing, painting, and others who can cause a release of contaminants. It is also commonly required by project owners and general contractors in the contract.
Is it project-based or annual?
Both exist. Some contractors carry an annual practice policy covering all their work; others buy project-specific coverage when a single job requires it. The right structure depends on your operations and contract requirements.
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