Environmental Remediation Contractors Insurance Policy Information
Environmental Remediation Contractors Insurance. As an environmental contractor, the services you provide are invaluable. Your job is to remove hazardous contaminants that could pollute the environment, such as surface and groundwater, as well as soil and sediment. You might also provide consultation services that help businesses learn how to reduce their carbon footprint.
Environmental remediation contractors remove, cleanup, or control pollutants or contaminants from buildings and other structures, soil, or water. They are called in when asbestos, lead, toxic mold or other environmental hazards have been identified by an environmental consultant as not being in compliance with EPA or other agencies such as OSHA and NFPA.
The method of remediation will vary based on the particular type of pollutant or contaminant and the site where it is found. The contamination can be removed or it can be treated in place. Removal involves physically cutting out the area of contamination and disposing of it in a landfill.
The area of contamination is then replaced with new building materials or new soil. Treatment in place involves adding mitigation agents to absorb the contaminants, using plants or fungi to provide "good" bacteria to contaminated areas, or sealing off the contamination.
Given the nature of your job, there are a number of risks that could put you in jeopardy of financial trouble. In order to protect yourself from these risks, it's important that you have right environmental remediation contractors insurance policies in place.
Environmental remediation contractors insurance protects your business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked environmental remediation contractor insurance questions:
- What Is Environmental Remediation Contractors Insurance?
- How Much Does Environmental Remediation Contractors Insurance Cost?
- Why Do Environmental Contractors Need Insurance?
- What Type Of Insurance Do Environmental Contractors Need?
- What Does Environmental Contractors Insurance Cover & Pay For?
What Is Environmental Remediation Contractors Insurance?
Environmental remediation contractors insurance is a type of insurance coverage specifically designed for companies that perform environmental remediation services. This insurance protects contractors against losses incurred as a result of environmental cleanup activities, including but not limited to site cleanup, hazardous waste removal, and soil or groundwater treatment.
The coverage typically includes protection against third-party claims arising from environmental damage, property damage, and bodily injury claims.
This insurance is designed to protect contractors against the significant costs associated with environmental remediation work, including cleanup costs, legal fees, and lost income.
How Much Does Environmental Remediation Contractors Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small environmental remediation contractor ranges from $57 to $79 per month based on location, size, payroll, sales and experience.
Why Do Environmental Contractors Need Insurance?
environmental contractors are exposed to a wide variety of risks on a regular basis. You work with a number of significantly harmful contaminants, such as sewage, biohazard, and medical waste, and other harsh agents. It's your job to tend to and clean up any spills of these contaminants that have the potential to negatively impact the environment.
While your job is to help reduce the impact of harmful agents on the environment, there is a chance that you may actually end up causing contamination.
A barrel of waste could spill into a waterway, or an oversight could lead you to miss cleaning up all pollutants, which could result in damage to the environment. Should a mishap arise, you could end up facing serious financial trouble.
The cost of repairing damages, legal fees, and any compensation that you might be required to pay can be exorbitant. Paying for these costs could put you in serious financial turmoil.
That's exactly why having the right environmental remediation contractors insurance in place is so important. It protects you from the financial strain that may be associated with any accidents, damages, and lawsuits that may arise.
What Type Of Insurance Do Environmental Contractors Need?
In order to properly protect themselves, environmental remediation contractors should carry individual policies or a package of policies that offers the following coverages:
- Commercial General Liability - This type of coverage provides protection for any third-party injuries or property damage that may occur. For instance, if you or a member of your team were to damage a client's property while performing a service or if a piece of your equipment were to malfunction on a job site and injure a client or another contractor - and it was determined that you were liable, you would have to pay for any repairs or medical bills. If a lawsuit is filed against you, you would also have to pay for the legal expenses. With commercial general liability insurance, you won't have to worry about paying for these costs out of your own pocket, because your provider will pay for any expenses that you are liable for.
- Professional Liability - Also known as errors and omissions (E&O), professional liability insurance will protect you from any legal claims that someone might file against you for any errors and omissions that occurred when you provided your services. In other words, if a client claims you made a mistake - an error (negligence) - or you didn't perform a service that you said you would provide - omissions - and that error or omission caused financial harm, your professional liability coverage would help to pay for the cost of legal defense, as well as any damages that may be awarded.
- Contractor's Pollution Coverage - General liability doesn't cover all third-party bodily injuries and property damages. For instance, pollution incidents are excluded from this type of coverage. That's why you need contractor's pollution insurance. This type of coverage is designed specifically for contractors and it offers coverage for any third-party bodily injuries, property damages, cleanup, and legal defense costs that might occur as a result of any pollution that happens when environmental contractors are performing their services; things that your general liability policy doesn't cover.
- Workers' Compensation - If you employ a staff that assists you with the environmental services you provide, you'll also need to invest in worker's compensation insurance. If an employee sustains a work-related injury or illness, this type of coverage will help to pay for the cost of his or her medical expenses, lost wages, job training if he or she is unable to return to work, and more.
These are just some of the different types of coverages that environmental contractors in should invest in. Policies can be purchased individually, but packages are available that offer most of these coverages under one policy.
Environmental Remediation Contractor Risks & Exposures
Premises liability exposures at the contractor's office are limited due to lack of public access. Outdoor storage may invite vandalism and attractive nuisance hazards. Off-premises exposures are high due to the potential for damaging customers' property during the removal of old building materials and installation of new materials.
Older materials generally contain asbestos, lead, or other hazardous environmental substances. The customer's employees or members of a customer's household can be injured by tripping or falling over tools, power cords, building materials and scrap. If there is work at heights, falling tools or supplies may cause damage and injury.
Completed operations exposures are generally high. Improper removal or mitigation can result in contaminants growing, causing additional damage to property or humans, and resulting in fines to clients.
Environmental impairment exposures are very high due to the removal, transport, and disposal of contaminants and old materials removed from structures or soil. Disposal procedures must adhere to all EPA and other regulatory standards. Proper written procedures and documentation of all processes is important. Training and supervision of employees are critical.
Professional liability exposure and errors and omissions exposure can be extensive if the contractor offers environmental counseling services due to the potential for environmental damage from ineffective advice or incorrect testing practices. All procedures must be followed and regular inspections conducted. Documentation must be clear, with changes marked and authorizations signed by both the consultant and the customer.
Customers can suffer financial loss if they must pay fines or cease operations due to a government order regarding environmental concerns. In addition, release of pollutants can cause property damage to surrounding residential or business areas.
Workers compensation exposure onsite is from office and laboratory operations. Repetitive motion injuries from use of office equipment can be reduced with ergonomically designed workstations. When there is a laboratory on premises, employees are exposed to pollutants, toxins or known carcinogens. Employees should have appropriate safety gear while working in laboratories and around any contaminants or pollutants brought onsite.
The exposures at job sites are significant. Workers are exposed to asbestos, lead, mold, and other contaminants during remediation work. Common injuries include eye, nose, throat, skin, and lung irritants, vapors, fumes, and toxins from adhesives, coatings, and solvents. Effects may be immediate or cumulative over a long period of time.
When work is done on ladders or scaffolds, severe injury or death can occur from falling, being struck by falling objects, or adverse weather conditions. The danger is reduced if there is good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices. Appropriate safety clothing and decontamination areas must be provided for all workers.
Property exposure at the contractor's premises is limited to an office and storage of equipment, materials and vehicles. Ignition sources include heating units, electrical wiring, wear, and overheating of equipment. If repair work on vehicles and equipment is performed in the building, fire hazards increase. Customers' property may be stored on the contractor's site during the remediation process. If there is a testing laboratory on premises, chemicals must be separated from combustibles and stored in fireproof cabinets.
Crime exposure is limited to employee dishonesty. Employee theft of a client's property may occur while on a client's premises or while the client's goods are on the contactors premises. Background checks, including criminal history, should be conducted on all employees handling money or with access to a client's property. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.
Inland marine exposures include accounts receivable if the contractor offers credit to customers, computers, contractors' equipment and tools, installation floater, and valuable papers and records for customers' and suppliers' information. Equipment may include hand tools, ladders, and scaffolding. The materials awaiting installation are subject to loss or damage by moisture, by employees or other contractors, vandalism and theft. Valuable papers and records also include required licenses and documentation of contracts and project approvals. All records should be duplicated, with copies stored off-site.
Commercial auto exposures include the transportation of workers, equipment, and materials to and from job sites and transportation of hazardous waste to approved landfills. Collision or overturn during transport can result in contaminants being spread over a wide area. All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.
Drivers may need a hazardous materials "hazmat" endorsement to transport some chemicals used. Hazards increase if the insured lacks spill control procedures and equipment.
What Does Environmental Contractors Insurance Cover & Pay For?
Environmental contractors may face lawsuits for a variety of reasons related to their work. Here are some examples:
Property damage or pollution: Environmental contractors may be sued if their work causes damage to property or the environment. For example, if a contractor is hired to clean up a contaminated site but fails to properly contain the pollution, nearby property owners may sue for damages.
Insurance can help cover the costs of such lawsuits through commercial general liability (CGL) insurance, which typically includes coverage for property damage and pollution. The insurance policy may pay for legal defense costs, settlement payments, or judgments against the contractor.
Personal injury: If someone is injured as a result of an environmental contractor's work, the contractor may be sued for damages. For example, if a contractor is hired to remove asbestos from a building and fails to properly contain the hazardous material, workers or occupants of the building may be exposed to it and suffer health problems.
CGL insurance may also cover personal injury claims, providing funds to pay for legal defense and any settlement or judgment.
Breach of contract: Environmental contractors may be sued for breach of contract if they fail to fulfill their obligations as outlined in their contract with the client. For example, if a contractor is hired to complete a project by a certain date but fails to meet that deadline, the client may sue for breach of contract.
In such cases, contractors may be covered by errors and omissions (E&O) insurance, which can help pay for legal defense costs and any damages awarded to the client.
Negligence: Environmental contractors may also be sued for negligence if their actions or inactions cause harm to others. Negligence is a legal term that refers to a failure to take reasonable care to prevent harm to others. For example, if a contractor fails to follow proper safety procedures and a worker is injured as a result, the contractor may be sued for negligence.
CGL insurance can also provide coverage for negligence claims, including legal defense costs and any damages awarded.
In conclusion, environmental contractors face a range of potential legal risks in their work, from property damage and pollution to personal injury and breach of contract. Insurance coverage can help protect contractors from the financial impact of lawsuits, but it is important for contractors to understand their risks and ensure they have adequate insurance coverage in place.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1799 Special Trade Contractors, Not Elsewhere Classified
- NAICS CODE: 562910 Remediation Services
- Suggested Workers Compensation Code(s): 5472 Asbestos Removal Operations - Contractor - Pipe and Boiler Work Exclusively & Drivers, 5473 Asbestos Removal Operations - Contractor - NOC & Drivers
1799: Special Trade Contractors, Not Elsewhere Classified
Division C: Construction | Major Group 17: Construction Special Trade Contractors | Industry Group 179: Miscellaneous Special Trade Contractors
1799 Special Trade Contractors, Not Elsewhere Classified: Special trade contractors primarily engaged in construction work, not elsewhere classified, such as construction of swimming pools and fences, erection and installation of ornamental metal work, house moving, shoring work, waterproofing, dampproofing, fireproofing, sandblasting, and steam cleaning of building exteriors.
- Antenna installation, except household type-contractors
- Artificial turf installation-contractors
- Awning installation-contractors
- Bath tub refinishing-contractors
- Boring for building construction-contractors
- Bowling alley installation and service-contractors
- Cable splicing service, nonelectrical-contractors
- Caulking (construction)-contractors
- Cleaning building exteriors-contractors
- Cleaning new buildings after construction-contractors
- Coating of concrete structures with plastics-contractors
- Core drilling for building construction-contractors
- Counter top installation-contractors
- Dampproofing buildings-contractors
- Diamond drilling for building construction-contractors
- Epoxy application-contractors
- Erection and dismantling of forms for poured concrete-contractors
- Fence construction-contractors
- Fire escape installation-contractors
- Fireproofing buildings-contractors
- Forms for poured concrete, erection and dismantling-contractors
- Gas leakage detection-contractors
- Gasoline pump installation-contractors
- Glazing of concrete surfaces-contractors
- Grave excavation-contractors
- House moving-contractors
- Insulation of pipes and boilers-contractors
- Lead burning-contractors
- Lightning conductor erection-contractors
- Mobile home site setup and tie down-contractors
- Ornamental metalwork-contractors
- Paint and wallpaper stripping-contractors
- Plastics wall tile installation-contractors
- Posthole digging-contractors
- Sandblasting of building exteriors-contractors
- Scaffolding construction-contractors
- Service and repair of broadcasting stations-contractors
- Service station equipment installation, maintenance, and repair-
- Shoring and underpinning work-contractors
- Spectator seating installation-contractors
- Steam cleaning of building exteriors-contractors
- Swimming pool construction-contractors
- Television and radio stations, service and repair of-contractors
- Test boring for construction-contractors
- Tile installation, wall: plastics-contractors
- Tinting glass-contractors
- Wallpaper removal-contractors
- Weather stripping-contractors
- Welding contractors, operating at site of construction
- Window shade installation-contractors
Environmental Remediation Contractor Insurance - The Bottom Line
To find out more about the different types of insurance you should invest in and how much coverage you should carry, speak to a reputable agent that is experienced with environmental remediation contractors insurance. There are several factors that need to be taken into consideration to determine how you can best protect yourself, your clients, your employees, and your business.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.