Environmental contractors in New York work on some of the most challenging and high-stakes projects: asbestos abatement, mold remediation, lead paint removal, soil excavation, tank removal, and hazardous waste handling. With those exposures comes serious risk—not just from accidents on the jobsite, but also from pollution-related claims that can cripple a business if the insurance coverage isn’t properly structured.
Most environmental contractors carry two key insurance policies: Commercial General Liability (CGL) and Contractors Pollution Liability (CPL). The first provides general liability protection for bodily injury, property damage, and completed operations. The second fills in the gaps by covering pollution-related claims that are excluded from most standard CGL policies.
But here’s the catch: not all policies are created equal. Many CGL and CPL policies for environmental contractors come with exclusions, warranties, or hidden conditions that can leave contractors exposed—sometimes without realizing it until it’s too late.
Below are 10 coverage issues every New York environmental contractor should be watching out for:
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1. Mold Exclusions
Some CGL policies carry a “total mold exclusion,” which means any claim involving mold remediation, mold damage, or mold bodily injury is completely uncovered. For environmental contractors, that’s catastrophic. Even pollution policies sometimes sublimit mold coverage, capping it at a low dollar amount. Always verify mold is affirmatively covered with adequate limits.
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2. Asbestos or Lead Exclusions
Despite being core services for many environmental contractors, some liability policies specifically exclude asbestos or lead abatement. Others may provide coverage only for “incidental” exposure. If your business handles these materials, you need to make sure both CGL and CPL policies expressly cover asbestos and lead-related work.
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3. Sudden and Accidental Pollution Only
Older pollution liability policies sometimes restrict coverage to “sudden and accidental” events, which excludes gradual pollution releases. That means long-term contamination from leaking storage tanks, improper disposal, or slow seepage into soil and groundwater might not be covered. A modern CPL should provide coverage for both sudden and gradual pollution events.
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4. Completed Operations Restrictions
Contractors are often surprised to learn that once their work is finished, their coverage drops off—or is heavily limited. For example, a contractor who removes an underground storage tank could face a lawsuit years later if residual contamination is discovered. If the policy excludes or limits completed operations, the contractor could be on the hook for massive costs.
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5. Insured vs. Insured Exclusions
Many CPL policies include provisions that exclude claims brought by one insured against another insured on the same policy. This can become an issue for contractors working under joint ventures or partnerships. Make sure the exclusion doesn’t leave you exposed to claims between project partners.
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6. Waste Disposal Site Exclusions
Environmental contractors often transport hazardous waste to approved disposal sites. However, if your policy excludes liability once the waste leaves your jobsite, you could face uncovered claims from contamination discovered at the disposal site—even if you followed all regulations. Look for a policy that extends coverage to off-site disposal.
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7. Professional Liability Carve-Outs
Environmental contractors often provide testing, consulting, or project design in addition to hands-on remediation work. Many general liability and pollution policies exclude professional services, leaving gaps. If your firm provides any consulting, design, or testing, you may need a combined CPL/Professional Liability policy to ensure those exposures are covered.
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8. Worker Exposure Exclusions
Some CPL policies exclude coverage for claims arising from employees being exposed to pollutants. While workers’ compensation covers much of this risk, contractors should be aware that lawsuits from third-party-over actions (where an injured employee sues another contractor or property owner, who then sues you) could fall into a gray area. Verify the CPL addresses these scenarios.
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9. Known Condition Exclusions
Insurers often exclude coverage for pollution conditions you knew about prior to the policy’s effective date. The issue is how “knowledge” is defined. If an employee, supervisor, or even subcontractor was aware of contamination, the insurer may deny coverage. Review how your policy defines a “known condition” and consider retroactive coverage where available.
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10. Warranties and Conditions That Can Void Coverage
Policies for environmental contractors often include strict warranties. For example:
• You must use only approved disposal facilities.
• You must follow specific EPA, OSHA, or state-mandated procedures.
• You must maintain records for a specified period.
Failure to comply—even unintentionally—could give the insurer grounds to deny a claim. These conditions can be deal breakers if not reviewed carefully. Always confirm you can realistically meet every warranty before signing.
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Why This Matters More in New York
New York is one of the most litigious states in the country, and environmental contractors face heightened risks due to:
• Strict liability laws for environmental contamination.
• Aggressive regulatory enforcement by the DEC, EPA, and local authorities.
• Third-party lawsuits from property owners, municipalities, and neighbors affected by remediation work.
A single uncovered claim could wipe out years of profits—or worse, your business entirely. That’s why having the right CGL and CPL coverage in place is non-negotiable.
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Where BGES Group Comes In
At BGES Group, we specialize in construction and environmental contractor insurance across New York and the tri-state area. Unlike many agencies that have gone “factory style” and treat contractors like just another account number, we provide true boutique-level service.
Contractors love working with us because:
• We know the fine print in liability and pollution policies—and we explain it in plain English.
• We identify dangerous exclusions before you buy a policy.
• We shop the market to secure broad, affordable coverage tailored to your specific environmental exposures.
• We treat every client like family, not like paperwork.
Think of us as the “mom and pop” boutique alternative to the big-box agencies. You’ll always get a live, knowledgeable person who understands your business and fights to protect it.
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Contact BGES Group Today
Don’t leave your business exposed to costly environmental claims. Let us review your current policies and give you an honest assessment of where you’re protected—and where you’re not.
📞 Gary Wallach
BGES Group – Construction Insurance Specialists
Phone: 914-806-5853
Email: bgesgroup@gmail.com
🌐 Website: http://www.bgesgroup.com
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✅ Bottom Line: If you’re a New York environmental contractor, your livelihood depends on your CGL and CPL policies being rock solid. But the fine print can be full of landmines. Work with BGES Group to make sure you’re not caught off guard by an exclusion, condition, or warranty that could devastate your business.