Pollution liability insurance protects third parties from pollution caused by the insured’s activities. These policies typically cover personal injury and property damage. You may also be covered for clean-up costs to remove the hazardous substances and restore the property to usable condition. Some insurance companies also allow you to add coverage for legal fees and investigation costs involved in pollution-related incidents. This usually requires a rider to your policy and an additional premium to compensate the insurance company for taking on more risk.
Contractors may need pollution liability coverage when working with on-site utilities such as sewer or water lines. This type of insurance also protects cleaning services at contaminated sites and covers damage from new sources of pollution discovered during the course of the job. You should also purchase pollution liability insurance if you own a company that produces emissions, such as a farm or truck stop. HVAC installers, excavators, landscapers and other subcontractors should have their own pollution liability insurance policies. Subcontractors’ activities are typically not covered under the general contractor and owner’s insurance policies.