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What is pollution from an insurance perspective? One definition is “any solid, liquid, gaseous, thermal, biological or radioactive substance, material or matter, irritant or contaminant including smoke, vapors, soot, silt, sedimentation, fumes, acids, alkalis, chemicals and waste.” The pollutant can be spread either accidentally or as the result of a plan, design or report error.
Contractors Pollution Liability insures against unintentional pollution from business operations. A common insuring agreement explains that it will cover “bodily injury,” ”property damage,” or “cleanup costs” caused by a “pollution condition” provided it arises out of work performed during the policy period and for damages incurred during the policy period.
For example, a painter at a job site accidentally kicks over a can of gasoline into a nearby stream. This is accidental, a known pollutant, and results from the business operations.
A Professional Liability policy pays claims resulting from professional services that create pollution events. This may include environmental remediation designs, storm water run-off plans, landscape architect plans, or land evaluations. The pollution, though not intended, results from a plan or design that fails to account for one factor or another.
For Professional Liability, claims can be made during the policy period, even if the event occurred in the past, as long as there was no prior knowledge of the event. These policies often limit claims using a retroactive date.
If your role on the job is a form of construction trade, such as electrician, plumber, or framer, Contractors Pollution Liability is likely the relevant coverage type. If your role is designer, environmental scientist, architect, or engineer, then both policy forms might come into play.
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