What is Groundwater Contamination Coverage?

Sustainability and environmental protection have become an essential responsibility of every business in the construction industry. However, one of the most overlooked risks for many contractors is the impact that can come from groundwater contamination.

From small projects to larger, more complex work, the potential for a pollution incident is always a risk. This makes contractors pollution liability insurance a much-needed safeguard for all professionals. In this blog, we’ll explore the risks of groundwater contamination, look deeper into the consequences of an incident, and discuss pollution coverage for your business. 

What Are the Risks of Groundwater Contamination? 

Groundwater contamination can arise from many construction activities, either as an accident or as a result of poor site management. Let’s look at some common causes below.

Leaks and Spills 

Several hazardous materials can be found on a job site and they can easily leak if not properly handled. A chemical or equipment fuel spill can cause severe environmental damage that your business may be held responsible for, resulting in steep cleanup costs and civil fines. 

Improper Waste Management 

While some construction waste is common across every job site, improper storage and handling can increase the risk of groundwater contamination. Adhering to a proper waste management plan helps to mitigate this risk.

Runoff From Your Site 

Even when chemicals and waste materials are properly stored or managed, rainwater can wash debris and pollutants into nearby sources causing groundwater contamination. These incidents can have significant environmental damage since groundwater is vital for irrigation, agriculture, and industrial purposes. 

Source: Shutterstock

Consequences of Groundwater Contamination 

Beyond financial repercussions, like emergency response costs and clean up costs, groundwater contamination also causes significant environmental damage, as well as legal consequences. A contractor whose work has led to pollution exposure could find themselves responsible for property damage and third party claims. 

Legal Penalties 

Environmental Regulatory bodies, such as the Canadian Environmental Protection Act, can impose severe penalties ranging from a hefty ticket to legal prosecution. 

Lawsuits 

Affected property owners, communities and businesses can also sue the contractor or business  directly for any property damage, health impacts, or decreased property value resulting in groundwater contamination. 

Read more: 11 Ways Construction Sites Can Reduce Pollution

Damaged Reputation 

Groundwater contamination can severely impact an individual contractor or business’s overall reputation in the industry. In addition, it could affect bids for future projects, which will affect a business’s future growth.

These consequences are business and life altering. Therefore the question is, how do I best safeguard my business against these risks? That is where we look at contractors pollution liability coverage. 

Source: Shutterstock

What is Contractors Pollution Liability Insurance? 

Contractors pollution liability insurance or environmental liability insurance is a type of commercial general liability coverage that protects contractors from the unique risks associated with environmental damage caused by pollution, including groundwater contamination. This pollution coverage includes financial protection against bodily injury, emergency response costs, third party bodily injury, property damage, and more. 

While many contractors may believe that their general liability insurance is sufficient, contractors pollution liability insurance is your best defence against pollution liability that may be excluded from a standard liability policy. Some of these coverages include: 

• Clean up costs 
• Legal defense costs 
• Third-party claims 

Choosing the Right Pollution Insurance Policy 

When choosing the most comprehensive environmental liability insurance policy with pollution coverage, it’s essential to consider the following: 

1. Analyze Your Risk 

Thoroughly review your operations to identify any potential sources of pollution liability. It may be helpful to consult with an expert in the field to do a thorough risk management assessment.

2. Understand Your Policy Terms 

Once you’ve determined your risk profile, review the pollution coverage of your current policy to ensure that the terms align with your business needs. This might include coverage of on and off-site pollution incidents or sudden and accidental pollution events.

3. Work With an Expert 

As a contractor, you are an expert in the work that you do. This would be the time to rely on the expertise of an experienced insurance broker to ensure your pollution coverage is sufficient.

Source: Shutterstock

Protect Your Business with Pollution Coverage from Contractors Insurance 

Savvy contractors and business owners know that environmental liability insurance is necessary to protect yourself from risks associated with pollution on the job site. This type of insurance can be customized to cover your costs in the event of an incident, including cleanup costs, third party bodily injury, property damage, bodily injury, and more. 

Contractors Insurance will work with you to tailor a plan that meets your needs and demonstrates your commitment to responsible environmental practices. With years of experience serving Ontario contractors, we know the unique risks you face at work and are dedicated to providing contractors pollution liability insurance policies that safeguard you from potential losses.

Get insurance coverage to protect your business from pollution liability. Contact us to learn how to best protect your business.