Pollution & Environmental Liability Insurance
Environmental risks can strike without warning, whether from a sudden spill, gradual contamination, or an unforeseen mould outbreak. For contractors and businesses in industries like construction, demolition, landscaping, and restoration, these events can lead to costly lawsuits, cleanup bills, and reputational damage.
At KASE Insurance, we build pollution liability insurance programs that protect you from these risks, giving you the coverage you need to handle environmental claims, emergency response costs, and legal expenses.
What is Pollution Liability Insurance?
Pollution liability insurance—also called environmental liability insurance or contractors’ pollution liability (CPL) insurance—covers environmental claims arising from your business operations. It fills the gap left by standard liability policies, which often exclude environmental hazards entirely.
Pollution is defined as the discharge, release, or escape of any solid, liquid, gaseous, or thermal contaminant, irritant, or pollutant. This can happen indoors or outdoors and may be sudden or develop over time. Whether you’re working on a residential build, managing a commercial demolition or installing underground tanks, pollution liability coverage ensures your business is protected from costly surprises.
We customize each pollution liability insurance policy to fit your industry, project type, and risk level, so you can focus on your work without worrying about environmental exposures.
Why Is Pollution Liability Insurance Important?
Environmental regulations in Canada are strict, and violations, whether accidental or not, can result in six-figure claims. Pollution insurance is critical because:
Environmental Claims Are Expensive
Claims made against your business can easily exceed $100,000 when considering remediation, legal defence, and damages. A premises pollution liability policy helps preserve your bottom line.
Fills Critical Coverage Gaps
Most general liability policies exclude pollution liability coverage. For contractors, pollution liability coverage is essential; otherwise, they may be responsible for environmental damage and associated costs.
Risks Are Often Unpredictable
Pollution incidents can arise from weather events, undetected hazards, or third-party actions. Environmental insurance coverage protects against both sudden and accidental pollution.
Protects Your Reputation and Relationships
Environmental incidents can disrupt projects, affect neighbouring properties, and trigger regulatory investigations. Having a pollution liability insurance policy in place demonstrates responsibility and readiness.
What Does Contractors’ Pollution Liability Insurance Cover?
While every policy is tailored, most pollution liability insurance policies cover the following:
- Sudden Pollution Events: Covers immediate pollution conditions and incidents linked directly to your work, such as spills, leaks, or chemical releases that cause harm to people, property, or the environment.
For example, a paving contractor’s materials wash into a storm drain during unexpected rain, contaminating local water sources. Environmental liability insurance covers cleanup costs and civil fines. - Gradual Pollution Events: Protects against long-term exposures that develop over time, which may be traced back to your contracting operations.
For example, poor air quality and respiratory issues prompt a building closure days after an HVAC installation. Pollution insurance covers emergency response costs. - Mould and Legionella Coverage: Provides protection when pollutants like mould spores or Legionella bacteria are released due to the contractor’s work.
For example, contracting operations disturb hidden mould during a renovation, which spreads and leads to health complaints from tenants. - Emergency Response and Clean-up Costs: Pays for urgent cleanup and containment efforts to minimize environmental damage.
For example, oil spill remediation after a fuel line ruptures on-site.
These policies are highly customizable and can include limited pollution liability, transportation pollution coverage, and completed operations protection depending on your project type. Our brokers will guide you through any optional coverages, building the best policy to protect your business.
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Complete Coverage Options Contractors Should Have
Pollution insurance is a crucial piece of protection that should be added to any well-rounded contractor’s insurance program. Contractors, construction companies, and property developers face a wide range of risks impacting projects, reputation, and the bottom line. At KASE Insurance, we help clients build robust insurance portfolios that support compliance, reduce liability, and safeguard profitability.
Commercial General Liability Insurance
Protects against third-party bodily injury, property damage, and personal/advertising injury from your operations. Most CGL policies exclude pollution liability coverage, making an environmental insurance policy even more essential.
Professional Liability Insurance
Also known as errors and omissions (E&O) insurance, this policy protects against claims of negligent acts tied to design, consulting, or regulatory compliance services. It’s particularly important for engineers, environmental consultants, architects, and design-build contractors.
Builder’s Risk Insurance
Builder’s risk insurance provides broad coverage for buildings under construction. It protects the project itself—materials, fixtures, and equipment to become part of the work—against fire, theft, vandalism, and water damage during construction or renovation.
Tools, Equipment & Installation Floater Insurance
“Inland marine” coverage for mobile equipment, contractors’ tools, and property awaiting installation—on site, in transit, or temporarily stored. Helps keep crews productive after theft, loss, or accidental damage.
Commercial Auto Insurance
Insures company trucks/vans for liability and physical damage. Non-owned auto extends liability when employees use personal vehicles for business errands, deliveries, or site visits—an often-overlooked exposure. If you operate heavy trucks or specialty haulers on a construction site, commercial truck insurance may be required as well.
Surety Bonds
Not insurance, but commonly required. Guarantees bid commitments, project completion, and payment of subcontractors/suppliers—improves bid eligibility and owner confidence.
Our brokers will work with you to evaluate the risks unique to your operations, contracts, and job sites. Together, we’ll assemble a customized insurance solution that protects every phase of your work—from planning to project handoff.
Who Needs Environmental Liability Insurance?
Any contractor or business that works with hazardous materials, disrupts soil, or could unintentionally cause environmental harm should carry pollution insurance. High-risk industries include:
Construction companies doing excavation, demolition, and site preparation work require pollution coverage. Covered operations include masonry, roofing, street/road maintenance, and more.
Fertilizers, pesticides, and soil disruption can contaminate nearby ecosystems or water sources. Pollution liability insurance helps mitigate risk for commercial landscapers, oil and gas services, storage tank installation, and government contractors like sewer and watermain technicians.
System installations can spread mould, Legionella, or contaminants if improper materials are used or systems fail post-installation. Contractors’ pollution liability protects HVAC installation and maintenance, plumbing, painting, carpentry, and more.
Use of chemicals, water damage remediation, and biohazard cleanup come with a high risk of environmental exposure and airborne pollutants.
Contractors in these fields work with materials, equipment, or processes that can unintentionally cause environmental harm. Without pollution liability coverage, even a single incident can lead to significant cleanup costs, legal claims, and reputational damage.
Why Choose KASE Insurance for Pollution Liability Insurance in Ontario
Environmental risks are unpredictable, but your protection shouldn’t be. KASE Insurance helps contractors and businesses secure the right pollution liability coverage at the best price for total peace of mind.
As an award-winning commercial insurance broker with deep knowledge of Ontario’s construction industry, we understand the risks associated with your projects and provide tailored environmental insurance policies that close gaps and meet legal obligations.
Whether you need basic coverage for residential work or complex protection for multi-phase commercial builds, our brokers will help you navigate your options and get the best possible coverage at a competitive rate. We work with Canada’s top pollution insurance providers to offer:
- Custom policies that fit your project and regulatory needs
- Access to sudden and accidental pollution liability coverage
- Push for fair, fast claim settlements
- Provide transparent, expert guidance from quote to claim
Ready to protect your business from third-party claims and environmental risk? Request your free quote today.
Read what clients have to say about KASE
By far the most professional and trustworthy insurance brokerage I have known. We have been working with this firm for number of years now and I have nothing but good to say about their team and services. Stan and his team won't stop until we are fully satisfied. They are always on top of things, super fast in their assistance and very professional. I highly recommend this firm to anyone seeking for great insurance brokerage to work with. Big Thank You to Stan and Kase Insurance for many many years of great service!
Reviewer: Alex K
out of 5 stars
Stan and is team at KASE Insurance have been fantastic in explaining what insurance we needed for our business. Very hands on approach and detailed. I work highly recommend KASE Insurance for any business owner looking for great service.
Reviewer: Kyle Grooms
5 out of 5 stars
The KASE team is very easy to work with. They answer your questions quickly, walk you through the process patiently, and find you great rates. We've been working with them for a few years and we haven't felt the need to shop elsewhere because of their customer service.
Reviewer: Sasha Boersma
5 out of 5 stars