As spring returns, so do the sounds of progress: shovels breaking ground, front-end loaders dumping fill dirt into heavy haulers, and construction workers opening the tailgates of their pickups at job sites. The return of spring of course also means rain, often resulting in project delays, other job challenges, and something more substantial – yet often overlooked: exposure to pollution.
Due to the nature of the business, construction sites often involve the movement and management of large amounts of dirt, which is the number one cause of pollution in U.S. rivers and streams. When the rain falls, dirt washes away, and without proper preventative solutions dirt and sediment may find its way into rivers and streams. The results may include damage to the gills of fish, blocking aquatic plant life from the sun and more.
To address this, the EPA requires construction site owners and operators that disturb one or more acres of land to use state-defined “best management practices” (BMPs) to “ensure that soil disturbed during construction activity does not pollute nearby water bodies.” The EPA provides some guidance on proper sediment and erosion control, suggesting the use of such methods as interceptor dikes, gradient terraces, or sediment basins. It’s important to note, and the EPA’s guidance specifically calls out, that your selection of the best controls “should be primarily based on the nature of the construction activity and the conditions which exist at the construction site.”
The problem is while implementing BMPs is a proactive measure in protecting the environment, they do not protect your business financially when accidents occur.
As a result, more and more construction contracts are requiring some form of pollution insurance coverage—and for good reason. Commercial General Liability insurance excludes coverage for most pollution claims except under very limited circumstances. As a result, pollution-specific policies and endorsements are now available in the market, designed to protect your business in the event of a pollution incident causing damages. The specifics, of course, depend on the particular wording of the policy or endorsement.
Here at Amerisure, we’ve recently introduced two new pollution endorsements: a Contractor’s Pollution Liability Insurance Endorsement and a Premises Pollution Liability Insurance Endorsement. These endorsements are not separate policies, but attach to the ISO Commercial General Liability policy, addressing gaps in coverage at an affordable price.
For more information, contact a Partners for Success® agent and ask “Is my business adequately covered for pollution?”
