Contractor’s regular liability policies generally don’t include, and often specifically exclude, environmental pollution cover. With increasing concerns about environmental pollution and stricter legislation in place it’s imperative that contractors and subcontractors have pollution insurance in place. Additionally, any pollution liability insurance policy must include cover for emergency response costs, because it’s likely that should a pollution event occur, immediate action will be required.

When researching what pollution liability insurance coverage’s are available in the market, ensure that any policy your company is considering includes the following, or similar specific covers.

– Cover for sudden or gradual pollution situations. Accidents concerning pollution can happen without warning, so your policy needs to cover this. Additionally there are many situations regarding pollution where it occurs over a gradual time period. A container may be leaking slightly, but go unnoticed for some time and by the time it’s discovered a serious pollution incident has occurred. Gradual pollution cover ensures that your company is protected against this type of situation.

– Ensure you are able choose whether you need continuous cover or cover for specific work. Continuous cover means your company is protected against pollution incidents that occur during the policy period which can be up to 10 or more years. Project specific cover can be purchased when you know the job your company is undertaking involves the potential for a pollution incident to occur and will cover you for a specific period. This type of cover is less expensive than continuous cover and is ideally suited for contractors who generally aren’t involved with work that may cause a pollution incident.

– Check the contractor’s pollution liability policy includes full legal liability cover. Litigation costs can be substantial and lengthy.

– Make certain that the contractor’s pollution liability policy provides protection for third-party claims. Examples include bodily injury, property damage and damage that may occur irrespective of whether the conditions are caused by contractors or subcontractors.

– Contractors pollution liability insurance also needs to extend to worldwide and terrorism cover.

– Pollution can cause serious mold and fungus; ensure the policy includes microbial matter cover.

As previously mentioned, make certain the policy includes emergency response cost and check the policy limits are suitable. It can be difficult finding cash sums to start an immediate clean-up and in the event of a sudden pollution event immediate costs are likely to be incurred. You need to be able to start the clean-up in the knowledge that any costs are fully reimbursable by the insurance carrier and that prior approval is not required up to and including the limit set in the policy wording.

Ensure that you cover all work sites where a pollution issue may arise. Storage yards and places where refuelling takes place need to be covered. The policy can also be extended to include offices. Transportation cover needs to be included and should also cover loading and unloading. Many pollution incidents occur during transportation and particularly during loading and unloading.

Finally, check the policy is not simply limited to third-party cover. Environmental pollution affects natural resources severely. If a natural habitat or river gets polluted it will be necessary for the area or river to be returned to the condition it was in prior to the pollution incident.

Find out more about Contractor Pollution Liability here and how Beacon Hill Associates can help you.

Find out more about Contractor Pollution Liability http://www.b-h-a.com/cpl and how Beacon Hill Associates can help you http://www.b-h-a.com.

Author Bio: Find out more about Contractor Pollution Liability here and how Beacon Hill Associates can help you.

Category: Business
Keywords: Environment, Insurance, Business