You are clearing out a 1950s attic. You drag a box across the insulation. A cloud of dust erupts. The client gets the air tested: it’s vermiculite asbestos. They sue you for the $25,000 abatement cost, claiming you “polluted” their home by disturbing the material. Your GL carrier sends a denial letter citing the “Pollution Exclusion.”
Key Takeaways
- The Absolute Pollution Exclusion: Almost all General Liability policies exclude coverage for asbestos, lead, mold, and silica dust.
- “Pollutant” Definition: Insurers define “pollutant” broadly to include any solid, liquid, gaseous, or thermal irritant or contaminant. Attic dust fits this.
- Contractors Pollution Liability (CPL): This is the only policy that covers this. If you work in older homes (pre-1980), you are taking a massive gamble without it.
- Stop Work Authority: If you see vermiculite or black mold, you must stop immediately. Disturbing it is what creates the liability.
The “Why” (The Trap): The Definition of “Occurrence”
The trap is that while you accidentally kicked up dust (an occurrence), the type of damage is excluded.
Exclusion f. (Pollution) in the ISO form states coverage does not apply to: “Bodily injury or property damage which would not have occurred in whole or part but for the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of ‘pollutants’.”
Since you released the asbestos fibers into the air, you have no coverage.
The Investigation: Toxic Coverage
I looked for carriers that cover “mold and environmental” for non-industrial contractors.
1. CPH & Associates (Allied Health)
- My Analysis: Some allied health/organizer policies have a small sub-limit for “Mold/Fungus.”
- Limit: Often $10k or $25k. Better than nothing.
2. Crum & Forster (Environmental)
- My Analysis: They write CPL policies.
- Cost: Minimum premiums are usually $1,500+. Expensive for a solo organizer, but necessary for hoarders/estate clear-outs.
3. Waiver Defense
- My Analysis: A waiver stating “Organizer is not responsible for pre-existing environmental hazards” is helpful, but if you disturbed it, the waiver might not hold up against a negligence claim.
Comparison Table: Pollution Risks
| Scenario | General Liability | Pollution Liability (CPL) |
| Knock hole in drywall | Covered | No |
| Disturb Asbestos Dust | Denied | Covered |
| Spread Mold Spores | Denied | Covered |
[IMAGE: Photo of vermiculite insulation with a warning label overlay]
Step-by-Step Action Plan
- Know the Look: Learn to identify vermiculite (looks like kitty litter/pebbles) and black mold.
- The “Stop Work” Clause: Your contract must say: “If hazardous materials are suspected, services will cease immediately until the area is cleared by a certified specialist.”
- Do Not Clean It: Do not try to vacuum it up. Standard vacuums spread the fibers. This increases liability.
- Check for Riders: Ask your broker: “Can I add a Mold/Pollution endorsement?” Sometimes it’s only $100 extra.
FAQ Section
Is dust considered pollution?
Silica dust (from drywall/concrete) is often considered a pollutant. Household dust is usually not, unless it contains toxins.
What if I didn’t know it was asbestos?
Ignorance is not a defense in liability. You are the “pro”; you are expected to know the risks of working in attics.
Does my health insurance cover me if I breathe it?
Yes, but asbestos issues (Mesothelioma) take 30 years to show up. Document the exposure now.