Gas Pipeline Contractors: General vs. Pollution Liability Coverage Requirements
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
Gas pipeline contractors face unique risks in the oil and gas industry. From accidental property damage to environmental contamination, your business must be protected with the right insurance coverage. Two critical types of insurance for contractors are General Liability (GL) and Pollution Liability (PL). Understanding the difference can save your business from costly claims and regulatory penalties.
General liability insurance covers claims related to bodily injury, property damage, and third-party lawsuits. For pipeline contractors, this means coverage if a contractor accidentally damages a client’s property, injures a worker not on payroll, or faces a lawsuit due to construction accidents. Learn more about general liability here.
What is Pollution Liability Insurance?
Pollution liability insurance protects your business from claims related to environmental contamination. This includes oil spills, leaks, soil contamination, or accidental discharge of hazardous materials. Unlike general liability, pollution liability specifically addresses environmental risks—common in gas pipeline projects where accidental leaks or spills can lead to expensive cleanup costs and regulatory fines. More info can be found.
Key Differences Between GL and PL
Coverage | General Liability | Pollution Liability |
Protects against | Bodily injury, property damage, third-party claims | Environmental contamination, pollution-related claims |
Typical claims | Slip and fall, property damage, minor accidents | Oil spills, leaks, environmental cleanup costs |
Required by law | Often required by clients or contracts | Required for environmental compliance in some states/projects |
Why Both Are Often Required
For gas pipeline contractors, both GL and PL insurance are essential. GL protects against general business risks, while PL safeguards against environmental liabilities that can result in major financial losses. Some clients or projects may even require proof of both coverages before awarding contracts.
How to Get the Right Coverage
Evaluate your project types and environmental risks.
Work with an experienced broker who understands oil and gas industry requirements.
Consider bundling policies to optimize coverage and reduce costs.
At Wexford Insurance, we specialize in helping oil and gas business owners find comprehensive insurance solutions. We work with top carriers nationwide to provide tailored coverage for gas pipeline contractors.
Request a quote from Wexford Insurance today and get personalized guidance for your oil pipeline contracting business.
