Any contractor who transports materials that could potentially create environmental pollution needs liability protection. When cargo is released into the environment—for example, a truck overturns and spills industrial cleaning solution into a stream—the contractor is legally liable for the contamination. Transportation pollution liability insurance provides protection for the transport of materials, including loading and unloading of cargo.
Transportation pollution liability can occur in a number of ways. For example, consider a situation where a contractor is traveling to or from a job site and is involved in a collision that releases contaminants onto the roadway. Should this occur, the contractor may be responsible for damages to another party’s vehicle in addition to being responsible for the remediation costs of cleaning up the spill.
Additionally, an environmental spill can involve many hundreds of gallons of contaminants, such as a cargo spill of motor oil. Say the oil is released not only onto the roadway but also into a nearby stream. The state’s Department of Environmental Protection (DEP) would deploy an emergency response team for remediation and also conduct an investigation of the impact of the spill on any surrounding residential areas, soil and water impact, and any future monitoring costs. The cost of the environmental spill could total several hundred thousand dollars.
Most commercial general liability (CGL) and commercial auto policies exclude coverage for transportation pollution liability when the “transported materials” are transported to locations beyond the boundaries of the job site. Pollution incidents can lead to significant financial losses and jeopardize a contractor’s business operations. Without the proper transportation pollution liability insurance, the remediation costs of a spill could potentially put a small environmental contractor out of business, to say nothing of the damage to their reputation. Transportation pollution liability insurance helps safeguard the contractor’s financial stability by covering expenses that would otherwise be borne by the contractor.
Carrying transportation pollution liability insurance demonstrates a contractor’s commitment to responsible and environmentally conscious business practices. It also provides peace of mind to the contractor, knowing that they have a safety net in place in case of unexpected pollution incidents.
C&S Specialty Underwriters specializes in liability insurance for contractors. We offer transportation pollution liability insurance as a part of the specialty liability product packages we provide for general contractors, artisan contractors, environmental consultants, and other environmental risks. Coverage is available in all states with primary limits as low as $100,000 and as high as $5 million per occurrence and $5 million aggregate. Contact us to discuss complete liability coverage for your contractor clients.
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