Contractors may potentially expose their businesses to costly environmental liability lawsuits by overlooking many day-to-day environmental risks such as mold or legionella pnuemophila bacteria growth, said global insurer Chubb in a new advisory.

Chubb’s new advisory, Contractors Pollution Liability Coverage – An Integral Part of Every Project, discussed the different jobsite environmental risks and explained how these can be mitigated by prudent risk management planning and a contractor’s pollution liability (CPL) insurance policy.

Diana Eichfeld, Chubb VP and the advisory’s co-author, said: "What many contractors may not realise is that environmental risk is often excluded from the commercial general liability insurance policy — making the contractor responsible for the expenses associated with an environmental liability lawsuit and the potential cleanup.

"Making a contractor's pollution liability insurance policy part of their risk management plans is a best practice that can help protect against the ever-increasing range of environmental risks."

The advisory, which was presented as an informational, offers insight on the following topics:

• Changing environmental regulations and their effect on contractors;
• Economic trends and their impact on environmental exposures;
• International expansion and local environmental regulations; and
• Insurance gaps and pollution liability coverage.

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