As a top-notch and award-winning commercial insurance brokerage firm in Ontario, Contractors Insurance is trusted by numerous businesses for their insurance needs. Our objective is to provide personalized insurance bundles that will help bring your business to a secure future.
Pollution liability insurance is one of the specialized policies we offer.
Suppose your business regularly works inside client properties, excavates soil, works near bodies of water, handles waste disposal, or encounters any project that can potentially cause environmental damage (i.e. affect air quality). In that case, we highly recommend pollution liability insurance for you.
With our proven track record of success and our long-term relationship with many satisfied clients, you can be sure that your business is in good hands with Contractors Insurance.
What Is Pollution Liability Insurance?
Pollution occurs when a solid, liquid, gaseous, or thermal irritant, contaminant, or pollutant is released or discharged into an indoor or outdoor environment. This can affect soil, bodies of water, or air. Given this broad scope, it’s easy to see why many industries are exposed to pollution liability.
Pollution liability insurance is here to protect your business from this unpredictable risk by covering legal fees, cleanup costs, and emergency response costs as needed.
The following incidents are covered under pollution liability insurance:
This refers to situations where the irritant, contaminant, or pollutant is released or discharged immediately after a job. This makes your business vulnerable to pollution liability, and such incidents are highly likely to end with a lawsuit.
If the damage or adverse effects only become noticeable in a matter of days, weeks, or months after as a consequence of a project. Lawsuits may be viable if a strong enough connection exists between your business operations and the incident of gradual pollution.
Mould and Legionella
The spread of mould and legionella are specific points of coverage found in a pollution liability insurance plan, as needed by the business. You may be legally charged with mould contamination in connection with your work on a structure. Meanwhile, legionella contamination can be linked to your business operations if you handle any fixture in contact with water or air-conditioning.
Who Can Benefit From Pollution Liability Insurance Coverage?
Pollution liability insurance will benefit you if:
- You work inside clients’ homes and private properties
- You handle projects involving fixtures or appliances that come in contact with water
- Your operations can affect the air quality of a given structure or space
- You excavate soil or work with underground tanks and similar equipment
- You do work near a body of water
- You handle potentially toxic substances or potential pollutants
- Your business regularly disposes of waste materials
The above qualifiers indicate that you are at risk of causing or aggravating environmental pollution. Pollution liability lawsuits can cost you thousands or even millions of dollars, depending on their extent. So if you’d like to secure pollution liability insurance to protect your business, Contractors Insurance is here to help.
Why Is It Important for Ontario Contractors to Have Pollution Liability Insurance?
In recent times, legislation has been established to protect Canada’s natural environment. Hence, if your business is found responsible for harming natural environments in the country, you can face fines and penalties on top of the cleanup or emergency costs.
However, when talking about pollution liability, it’s not only the natural environment at stake. Even enclosed structures can be subjected to pollution, and this can still lead to costly lawsuits. This is why pollution liability insurance is more crucial than ever before.
Pollution Liability Claims Examples
Claims Example #1
As a paving contractor, you applied a coat on a new road when suddenly heavy rain washes the substance into a nearby body of water, causing a significant impact on wildlife and only reported a day later.
Pollution liability insurance will cover needed cleanup costs potentially amounting to $2000 and the environmental penalty of $100,000.
Claims Example #2
A property to which your business installed air conditioning has since had 10 cases of legionnaire’s disease.
It was later proven that the air conditioning units you installed were contaminated with Legionella bacteria. Pollution liability insurance will cover the settlement fees amounting to $250,000.
Claims Example #3
The home you renovated has since had an infestation of mould, and the homeowner sues your business.
Pollution liability insurance covers home builder contractors from settlement fees amounting to $5000.
Leading Provider of Pollution Liability Insurance in Ontario
From the beginning, Contractors Insurance has been committed to excellence in terms of how well we respond and adapt to our client’s unique needs.
We’ve set ourselves apart from other insurance brokers in the market by offering these valuable benefits:
Personalized Insurance Plans
The cookie-cutter approach often leads to bulky insurance plans with costly unnecessary riders. We tailor our plans so that you can have specialized coverage that targets your needs directly. Without expensive riders, you can also save on premiums in the long run.
Utmost Transparency on Coverage and Limitations
Get to know your insurance plan just as well as we do. You’ll know everything about your plan’s coverage, limitations, and exclusions. This is the proactive transparency you can look forward to with us.
Thorough and Straightforward Insurance Education
As insurance experts, we treat our clients like partners. If you ever need to make tough decisions on commercial insurance or risk management, we make our insights and expertise readily available for you. We’re always just a phone call away.
Frequently Asked Questions About Pollution Liability Insurance
The cost of pollution liability insurance depends on a number of factors, including the size of the business and the nature of the industry. For example, the average cost of pollution liability insurance is around $150 per month for a coverage limit of approximately $1 – $2 million.
Pollution liability insurance is currently not legally required in Ontario. However, environmental claims against a business can lead to steep civil fines and penalties, which is why companies exposed to such risks opt for pollution liability insurance.
Ready to Get the Coverage You Need?
Contractors Insurance is an Ontario-based, award-winning insurance brokerage firm that you can always count on. Through our years of service, we have helped numerous businesses with their unique insurance needs. Our personalized insurance bundles and dedicated assistance will help you run your business worry-free.