Pollution Liability Insurance
Standard general liability policies exclude pollution claims — entirely. If your operations involve any substance that could be classified as a pollutant, you need dedicated coverage that fills that gap.
Pollution exclusions in standard CGL policies are broader than most businesses realize.
The pollution exclusion in a standard CGL policy excludes coverage for "the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of pollutants." Courts have interpreted this language broadly — and it has been applied to exclude claims involving chemicals, fuel, mold, lead paint, asbestos, silica dust, and even construction debris. If your operations involve any substance that could arguably be a pollutant, your CGL may not respond.
Pollution liability policies are designed to cover what the CGL excludes — third-party bodily injury and property damage from pollution events, cleanup and remediation costs, and in some cases, defense costs and regulatory fines. Coverage can be written for a specific site, for contracting operations, or on a blanket basis across multiple locations.
The businesses with the clearest pollution exposure include environmental contractors, fuel distributors, chemical manufacturers, dry cleaners, auto repair shops, and any business with underground storage tanks. But contractors of all types — HVAC, plumbing, roofing, painting — regularly encounter substances that trigger the CGL pollution exclusion.
What this coverage does for you
- Covers third-party bodily injury and property damage from pollution events
- Covers cleanup and remediation costs at your site and third-party sites
- Fills the gap left by the CGL pollution exclusion
- Available for contractors, site owners, and environmental service firms
- Can cover sudden/accidental and gradual pollution events
- Underground storage tank (UST) coverage available
What pollution liability covers.
Pollution liability addresses the exposures that fall outside the scope of your general liability policy.
Third-Party Bodily Injury & Property Damage
Covers claims from neighboring property owners, residents, or the public who suffer bodily injury or property damage as a result of a pollution event originating from your operations or site.
Site Cleanup & Remediation
Covers the cost to investigate and remediate pollution conditions at your own property or at third-party sites impacted by pollution from your operations — soil, groundwater, and air cleanup costs.
Contractor's Pollution Liability (CPL)
Written for contractors who may encounter or disturb pollutants during their work — HVAC technicians working with refrigerants, painters working with lead-containing materials, plumbers disturbing asbestos pipe insulation, or general contractors handling construction debris.
Underground Storage Tanks (UST)
UST liability is required by federal and state regulations for owners and operators of underground fuel storage tanks. Covers third-party bodily injury, property damage, and cleanup from UST releases.
Regulatory Defense & Fines
Some pollution policies include coverage for defense costs in regulatory proceedings and, where insurable, fines and penalties assessed by environmental regulatory agencies.
Transportation Pollution
Covers pollution events that occur during the transportation of hazardous materials — fuel spills, chemical releases, or other pollution events arising from vehicles hauling pollutants.
Common questions.
Very broad. Courts across the country have applied the standard CGL pollution exclusion to claims involving fuel oil, refrigerants, carbon monoxide, lead paint, asbestos, mold, silica, and construction dust. If you work with any substance that could be classified as a pollutant — and that's most contractors — you should not assume your CGL responds to those claims.
Environmental contractors, fuel distributors, chemical manufacturers, dry cleaners, auto repair shops, and businesses with underground storage tanks have clear need. But HVAC contractors, plumbers, roofers, painters, and general contractors regularly encounter pollution exclusion issues as well. We'll review your operations and identify the actual exposure.
Occurrence-based pollution policies cover events that happen during the policy period, regardless of when the claim is reported. Claims-made policies cover claims reported during the policy period for events that happened after the retroactive date. Most pollution liability policies are written on a claims-made basis — the retroactive date and tail coverage are important considerations at renewal.
Mold is excluded from most standard CGL policies under the pollution exclusion, and many pollution liability policies also have specific mold exclusions. Dedicated mold coverage is available as a separate endorsement or policy. If mold exposure is relevant to your operations — water damage restoration, HVAC, property management — we'll address it specifically.
Yes — and many general contractors now require it in their subcontractor agreements. Even if the GC carries pollution coverage for the project, that policy protects the GC's interests. Your own pollution liability covers your specific work and operations, and without it, you may be contractually in breach and personally exposed.
Your CGL doesn't cover this. We do.
If your operations involve any substance that could be classified as a pollutant — fuel, chemicals, refrigerants, or even construction materials — let's make sure the gap is covered.