Here are some examples of what Contractors Pollution Liability insurance would cover.
Sewerage pipe defects causing pollution
A subcontractor improperly installed a sewer pipe, resulting in raw sewage migrating into the underlying groundwater and
contaminating nearby residential properties.
Injury and property damage claims were filed against the contractor, and the builder had to indemnify third parties and pay
defence costs exceeding $425,000.
On-site fuel tank leak causing pollution
A diesel fuel tank was delivered to the site. It was used for months before a resident alerted the earthworks contractor to
discolouration of the water in the local creek. The tank turned out to have a leak in the base. Fuel had soaked into the ground and found its way into the creek.
The contractor put absorbent booms along the river bank, but clean-up of the contaminated soil and groundwater took
months.
Costs came to around $500,000 and criminal prosecution and fines were considered.
Asbestos disturbed on site requiring clean-up
An electrical contractor working on refurbishment of a second-floor tenancy stepped into a small hole cut in to the floor. His
foot broke through the ceiling of the retail store below. Asbestos insulation within the ceiling void contaminated the tenancy
below.
Clean-up and reparation costs were around $250,000.
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