Pollution Risks and Connecticut Contractors Insurance

Today, due to increasingly strict environmental regulations, virtually every contractor faces a growing array of environmental risks and liabilities. In an instant, violation of these regulations can damage property, impact lives of those living in or around a community, and damage the company’s reputation, something earned after years of providing quality work and performance.


As a result, more and more contractors and consultants are vulnerable to many of the new, and newly enforced regulations, and along with that the potentially costly liabilities, all of which stem from pollution incidents occurring at job sites. Given all of the expensive remedial work, project delays, and lost revenues that could result from this, there is a growing trend in both public and private projects to require substantial environmental insurance coverage as part of a Connecticut contractors insurance package.


This may even occur on jobs for which it may not have been previously required in the past. In addition, many contractors are looking at even more competition in a growing industry, particularly in the area of infrastructure projects, and that often leads them to venture into areas outside their proven expertise; into situations where they may not be aware of some of the potential liabilities.


The multitudes of exposures cause serious concern for contractors


There’s no shortage of pollution exposures in the construction business. The list of potential pollution liability issues, many of which can impact contractors include:


  • Soil contamination


  • Chemical spills


  • Pipeline ruptures, and


  • Fuel leakage, among other things


Work performed by a contractor that creates pollution, or exacerbates an existing condition, will likely create liabilities stemming from injured parties and necessitate an extensive remediation effort, which may be quite costly. For a small to mid-sized contractor or consultant, these liabilities can be severe enough to jeopardize their financial footing, and ultimately can damage their ability to remain in business.


An inadequately insured contractor can experience severe financial hardship in the event a claim is made or a suit is filed. But a growing trend in the construction industry to create a collaborative construction team is increasingly exposing contractors to even more professional liability issues. Concerns such as faulty design, construction management liabilities, and subcontracted design errors are among the types of exposures that may impact contractors and the construction industry moving forward.


Coverage for these issues and many other pollution concerns can be purchased from local agencies familiar with the construction industry and the inherent risks and exposures. Speak to an agent today about specific concerns regarding Connecticut contractors insurance.


photo credit: Ian Sane cc