Contractors may need pollution liability coverage when working with on-site utilities such as sewer or water lines. This type of insurance also protects cleaning services at contaminated sites and covers damage from new sources of pollution discovered during the course of the job. You should also purchase pollution liability insurance if you own a company that produces emissions, such as a farm or truck stop. HVAC installers, excavators, landscapers and other subcontractors should have their own pollution liability insurance policies. Subcontractors’ activities are typically not covered under the general contractor and owner’s insurance policies.

Your coverage is limited by the terms of the policy. You may have a per person limit and an aggregate limit for the entire incident. There will also be a deductible on the policy that you must pay out of pocket before any insurance coverage starts. Increasing your deductible will typically reduce your premium costs.

Check the details of your policy to make sure all hazards present at the job site are covered. Some policies may exclude common hazards found in older buildings such as asbestos, lead and mold. Pre-existing pollution on the job site may also be excluded from coverage. If your company will be working on a job site with a particular hazard that is not covered, contact your insurance company to inquire about purchasing additional coverage. Depending on the risk involved, you may be able to add a rider that includes coverage for a specific known hazard.