The Pollution Exclusion Problem
Standard Commercial General Liability policies contain a "total pollution exclusion" — a broad clause that eliminates coverage for bodily injury, property damage, or cleanup costs arising from the discharge, dispersal, release, or escape of pollutants. Under many policies, this exclusion applies to pesticides and herbicides.
This is not a new development or an obscure technicality. It's a well-established policy provision that insurers have enforced successfully in claims. Tree care companies that apply chemicals and assume their GL policy will respond to resulting claims are carrying an uninsured exposure.
Contractor's Pollution Liability (CPL) is the insurance product designed to fill this gap. It provides coverage for bodily injury, property damage, and cleanup costs arising from pollution incidents connected to your contracting operations — including pesticide and herbicide applications.
Who Needs This Coverage
If any of the following apply to your operation, you need to discuss pollution liability with your agent:
- You apply herbicides for weed control, brush management, or invasive species removal
- You apply pesticides or insecticides as part of plant health care services
- You apply fertilizers — including slow-release soil injections
- You spray tree growth regulators (TGRs)
- You offer integrated pest management (IPM) services
- You hold a pesticide applicator license in any state
The exposure isn't limited to companies with large plant health care divisions. Even a single herbicide treatment for a stump or invasive vine creates pollution liability exposure.
How CPL Is Written
Contractor's Pollution Liability can be structured in a few different ways depending on your carrier and your operation:
Standalone policy: A separate pollution policy with its own limits and deductible. This is the cleanest option and avoids any ambiguity about how the coverage interacts with your GL.
Endorsement to your GL: Some carriers offer a pollution coverage endorsement that adds limited pollution coverage back into your GL policy. These endorsements vary significantly in scope — read them carefully.
Package with your GL: A few specialty markets for tree care will write GL and pollution together in a single package policy designed for the industry. When available, this can be an efficient and cost-effective option.