Contractors Pollution Liability Insurance
Risk scenarios
Who it’s for:
- Our contractors pollution liability insurance is for all kinds of contractors, organisations and projects:
- Construction companies
- Developers
- Facilities management businesses
- Drainage contractors
- Environmental consultants and remediation contractors
- Local authorities
- Public private partnership projects
- Brownfield redevelopment projects
- Utilities
- Large infrastructure projects
- Any finance company or other business controlling a construction project
What it covers:
- How pollution liability insurance keeps your contracting business covered:
- Indemnity for clean-up costs relating to third-party claims or where required by environmental law
- Liability for biodiversity damage, including complementary and compensatory remediation costs
- Mobilisation or exacerbation of a pre-existing (historical) pollution event
- Write back for asbestos abatement work and inadvertent disturbance of asbestos and lead based paint.
- Liability for third-party bodily injury, property damage, trespass, nuisance and obstruction
- Damage to third-party property, including diminishment in value
- Loss mitigation costs and emergency expenses incurred in dealing with the threat of pollution or environmental damage
1. A general civil contractor incident
On a housing development project a contractor was using a grader to level the site. During the course of the work the contractor spread soil contaminated with asbestos, heavy metals and polychlorinated biphenyls across the site and also onto neighboring properties.
Effect
The contractor was held responsible for exacerbation of pre-existing contamination and was ordered to compensate the client.
Cost
The total cost was in excess of £560,000
2. Utility installation incident
A contractor responsible for installing telecommunication services performed a site check for underground infrastructure prior to commencing work. The site check failed to detect a disused former fuel pipeline. Excavation hit the pipeline, which was partly pressurized.
Effect
Approximately 10,000L of fuel escaped from the pipe.
Cost
The contractor was responsible for the emergency response, removing contaminated soil and confirming that groundwater had not been impacted. The total cost was in excess of £1 million.
3. A commercial development incident
A contractor was responsible for a multi-billion pound waterside development project. Excavation uncovered a large amount of contaminated fill material beneath the project site. The material was tested for contamination and transported to a facility with the appropriate licence to accept the material.
Effect
After disposing of the waste for a number of weeks, the material was found to have higher concentrations than originally detected.
Cost
The local authority traced the waste back to the project site and claimed damages and remediation costs. The settlement was in excess of £5.5 million.
Resources
Environmental risk is a part of every organisation’s profile. Strategy and operations are increasingly shaped by regulation, which is often complex to navigate. Chubb’s expertise and partnered approach provides a solution to these challenges