Many businesses, knowingly or not, release pollutants during their daily operations. While some take proactive measures to mitigate environmental impact, others may be unaware of the risks they face — until it’s too late.
If pollutants from your business contaminate another property or cause harm to individuals, you could face serious financial and legal consequences. That’s where pollution insurance comes in.
What Is Pollution Insurance?
Pollution liability was once included in standard general liability policies. However, the asbestos crisis of the 1970s led insurers to exclude it, requiring businesses to purchase pollution coverage as a separate policy.
Today, pollution insurance is available to businesses of all types — from farms and manufacturing facilities to salons, dry cleaners, apartment complexes, and more.
Why Is It Important?
Pollution can stem from current operations or from contamination already present on your property. If these pollutants migrate or cause damage, your business could be liable for cleanup costs, property damage, or personal injury — even if the pollution wasn’t intentional.
Without insurance, these costs come straight out of your pocket.
What Does It Cover?
Pollution insurance policies vary by provider, but most offer coverage for:
- Third-party bodily injury and property damage
- Cleanup costs on third-party properties
- Pollution incidents occurring after policy inception
- Legal defense costs, including investigation and court fees
Who Needs Pollution Insurance?
This type of coverage is essential for:
- Property owners and tenants with a history of contamination (e.g., old underground storage tanks)
- Contractors (like roofers) who use or encounter hazardous substances such as tar or chemicals
- Design professionals (architects, engineers) involved in projects with environmental exposures — often as an add-on to their errors and omissions insurance
5 Real-World Examples: Why Contractors Need Pollution Liability Insurance
- Roofers Using Hot Tar
A roofer accidentally spills hot tar that seeps into the building’s HVAC system, releasing fumes and requiring emergency environmental cleanup. - HVAC Contractors Handling Refrigerants
During a routine AC system replacement, refrigerant leaks into the soil. The contractor is liable for environmental remediation costs and potential fines. - Demolition Contractors Uncover Asbestos
A demolition project disturbs previously undocumented asbestos. Nearby properties file claims due to contamination, requiring legal defense and cleanup. - Painters and Coatings Contractors
Spray painting a large structure leads to overspray drifting onto nearby vehicles and properties. The resulting cleanup and damages are not covered under general liability alone. - Site Excavators or Grading Contractors
Digging on a site unearths contaminated soil that must be removed and properly disposed of under environmental regulations. Without pollution coverage, the contractor pays out-of-pocket.
The Bottom Line
Pollution insurance is a critical part of any comprehensive risk management strategy. If you’re unsure whether your business is adequately protected, it’s time to talk to an expert.
Why BGES Group?
At BGES Group, we specialize in helping businesses across New York, New Jersey, and Connecticut secure the right coverage. Representing over 50 insurance carriers, we offer tailored solutions for:
- Pollution & environmental liability
- General and umbrella liability
- Property and builders’ risk
- Inland marine, auto, and bonds
- Workers’ compensation, NYS disability, and group health
We go beyond the basics. Whether it’s a weekend or weekday, we’re just a call, text, or email away — ready to help you protect what you’ve worked hard to build.
Special Expertise: Workers’ Compensation
If you’re facing challenges with your workers’ comp — like rising rates, non-renewals, audits, or classification issues — we can help. We offer exclusive programs for:
- Auto services
- Contractors (especially in New York)
- Limousine and logistics companies
- Manufacturers and recyclers
- Trucking businesses
We are a preferred agent for a premier multi-state program that offers competitive pricing, audit relief, and long-term coverage stability.
Let’s Talk
📞 Call Gary Wallach at 914-806-5853
📧 Email us bgesgroup@gmail.com
🌐 Visit our website www.bgesgroup.com
BGES Group
216A Larchmont Acres West, Larchmont, NY 10538