Pollution Liability Insurance

Pollution liability insurance protects businesses from financial losses related to environmental contamination. Standard general liability policies typically exclude pollution-related incidents, which is why this specialized coverage is essential for certain industries.

What Pollution Liability Insurance Covers

1. Cleanup Costs
   Covers expenses related to cleaning up soil, water, or air contamination caused by your operations.

2. Third-Party Bodily Injury and Property Damage
   Provides protection if your business activities result in illness, injury, or property damage to others due to pollution.

3. Legal Defense Costs
   Pays for legal fees, settlements, and judgments if your company is sued over a pollution-related incident.

4. Business Interruption
   Covers income loss and extra expenses if your business operations are halted due to an environmental event.

5. Pollution During Transportation
   Covers spills or leaks that occur while transporting hazardous materials.

6. Contractors Pollution Liability
   Specifically designed for contractors whose work could result in contamination on or off site.

Common Exclusions

Pollution liability policies usually do not cover:

• Intentional or criminal acts

• Known pollution conditions that existed prior to policy inception

• Gradual pollution (unless specifically added)

• Certain pollutants like asbestos or lead (unless endorsed)

• War, terrorism, or radioactive contamination

• Contractual liabilities outside the scope of regular business operations

Who Needs Pollution Liability Insurance?

This coverage is vital for industries that handle, produce, store, or transport hazardous materials, such as:

• Construction and demolition companies

• Waste management and recycling services

• Manufacturing and industrial operations

• Fuel and chemical distributors

• Auto repair and detailing shops

• Environmental contractors and remediation firms

• Landscaping and pest control services

Types of Pollution Liability Policies

• Premises Pollution Liability: Covers pollution events that happen on your property.

• Contractors Pollution Liability: For project-based work where contamination might occur off-site.

• Transportation Pollution Liability: Protects against incidents during the transport of hazardous substances.

• Products Pollution Liability: If a product your business makes or sells causes pollution.

Why It Matters

Pollution claims can result in six- or seven-figure expenses, from cleanup and EPA fines to lawsuits and business shutdowns. Most commercial general liability (CGL) policies include “absolute pollution exclusions,” leaving you exposed.

With increasing regulatory scrutiny and environmental awareness, having pollution liability insurance is not just about protection—it’s about credibility and preparedness.

How to Lower Premiums

• Implement environmental safety programs and regular employee training

• Maintain clean records and documentation of procedures

• Conduct routine maintenance on equipment

• Invest in early-detection sensors and safety systems

• Choose policy limits that reflect your actual exposure

• Work with a broker who understands your industry’s unique environmental risks

Call to Action

Unsure whether your business is exposed to environmental liability? We work with nearly 100 carriers to find the right pollution liability policy for your operations—whether you’re a contractor, manufacturer, or transport company. Fill out the form below — get your personalized quote today. It’s fast, secure, and tailored to your industry.