Is Pollution Liability Required to Bid Government Excavation Jobs?

WHY AGENCIES ARE ADDING THIS REQUIREMENT

Government agencies would rather have pollution risk sitting on a contractor’s insurance policy than on the public budget if excavation work triggers a release. Requiring proof of Contractor’s Pollution Liability before a bid is accepted shifts that risk transfer into the contract from the start, rather than leaving the agency exposed if something goes wrong mid-project. This shows up most consistently on projects touching ground with an uncertain environmental history, brownfields, old industrial or rail corridors, or infrastructure work near waterways.

WHAT TO CHECK BEFORE YOU BID

Bid specifications typically state minimum CPL limits, commonly $1 million per occurrence or higher depending on project scope, and sometimes require the agency to be named as an additional insured on the pollution policy specifically, separate from your GL policy’s additional-insured endorsement. Reading the insurance requirements section of a bid packet closely, before investing time in the rest of the proposal, is the only reliable way to catch this. Confirming your standing coverage meets the requirement ahead of time, rather than after a bid gets kicked back, is the difference between competing for the job and losing it on a technicality.

Back to the Pollution Liability hub, or see a full breakdown of pollution liability on government contracts and what pollution liability typically costs.