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Oracle RMS Insurance

Pollution Liability Insurance

Commercial Insurance — Oracle RMS Insurance

Pollution Liability Insurance

Cover your business against the costs of pollution incidents — cleanup, third-party claims, and regulatory response.

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Pollution liability insurance covers the costs associated with pollution incidents caused by your business operations, including environmental cleanup, third-party bodily injury and property damage claims, and regulatory defence costs. Standard commercial general liability policies contain broad pollution exclusions, leaving businesses with significant uninsured exposure. Pollution liability fills this gap for contractors, manufacturers, property owners, and any business that handles, stores, or transports potentially polluting substances.

Who needs this coverage?

Contractors, manufacturers, property owners, environmental consultants, fuel distributors, auto repair shops, dry cleaners, agricultural operations, and any business that handles chemicals, fuels, solvents, or other potentially polluting materials needs pollution liability coverage.

Key coverages

  • Third-party bodily injury from pollution
  • Third-party property damage from pollution
  • On-site and off-site cleanup costs
  • Regulatory defence and fines
  • Transportation pollution incidents
  • Contractor pollution liability
  • Mould and legionella coverage (optional)
  • Emergency response costs
  • Natural resource damages
  • Legal defence costs

Frequently Asked Questions

Why doesn't my CGL policy cover pollution?
Standard CGL policies contain absolute or qualified pollution exclusions that eliminate or severely restrict coverage for pollution-related claims. This exclusion was introduced in the 1980s and remains standard in most commercial policies today. A standalone pollution liability policy is needed to address this gap.
What qualifies as a pollutant under a pollution policy?
Pollution policies define pollutants broadly to include any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapours, soot, fumes, acids, alkalis, chemicals, and waste. This can include common substances like fuel oil, hydraulic fluid, and cleaning solvents.
Do contractors need pollution liability?
Yes. Contractors who disturb soil, handle hazardous materials, or work near fuel storage are exposed to pollution liability. Contractor pollution liability (CPL) policies are specifically designed for this exposure and are increasingly required by project owners and municipalities.
What is the difference between site pollution and contractor pollution liability?
Site pollution liability covers pollution incidents arising from a specific property you own or operate. Contractor pollution liability covers incidents arising from your contracting operations at job sites. Many contractors need both if they also own their own yard or facility.
Is pollution liability required by law in Ontario?
Pollution liability is not universally mandated, but it is required by many municipalities, project owners, and government contracts. Environmental regulations under the Ontario Environmental Protection Act can impose significant cleanup obligations regardless of insurance.

Ready to review your coverage?

Speak with a licensed broker at Oracle RMS — by phone, video, or in person. We serve businesses across Canada.*

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* Commercial insurance services available across Canada, excluding Quebec.