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Contractor Pollution Liability

What Is Contractor Pollution Liability?

Contractors pollution liability helps protect companies from the liability and financial loss caused by conditions resulting from pollution due to the performance of their work. Chemicals and toxic gases from broken pipelines, contaminated soil disposal or accidental release of fuel oil are some of the risks the contractor is exposed during a construction project. Pollution incidents can result in a serious harm not only to your operations, but to public health and safety as well as to the environment. Even common substances as salt and fuel oil can harm drinking water sources.

A few examples of types of projects covered by contractor pollution liability includes environmental remediation projects, site restoration and cleanup projects as well as abatement projects and abandoned industrial site projects.

In the last decade, Canada environmental legislation has moved from a more indulgent approach to one of absolute persecution to polluters. Before, pollution accidents were covered under a commercial general liability policy, but now contractor pollution liability coverage is a stand-alone policy, and is excluded from CGL.

Who Need Contractor Pollution Liability?

These are some of the trades eligible for contractor liability insurance:

  • General contractors:
  • Subcontractors
  • Construction managers
  • Project owners
  • Trade contractors: HVAC, paving, carpentry, concrete
  • Specialty contractors: pipeline, tank installation and foundation
  • Remediation contractors

What Does Contractor Pollution Liability Cover?

Contractors Pollution Liability insurance covers a wide range of pollution risks related to construction projects.

  • Insurance for third-party claims for bodily injury, third party property damage – including natural resource damages - and third party environmental damage caused by pollution incidents resulting from the performance of the contractor operations.
  • Clean-up costs that happen on an insured site or off an insured site.
  • Sudden and accidental pollution events.
  • Insurance for emergency expenses incurred when responding to an imminent and substantial threat to public health, safety or welfare or to the environment.
  • Insurance for underground storage tanks.
  • Coverage for pollution conditions resulting from completed operations.
  • Protection against claims alleging improper supervision of subcontractors which results in pollution conditions
  • Coverage for non-owned disposal sites
  • Business interruption related to pollution conditions including extra expenses and project delay costs
  • Coverage for first and third party diminution in value.

Applying For Contractor Pollution Liability? Have Questions?

Contact our Environment experts at 1-877-213-4545 or

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