You need general liability, plus contractors pollution liability that covers soot, smoke, and ash, because your general liability policy names those as pollutants and denies the claim. Most fire restoration companies also add coverage for the customer belongings they pack out, plus workers comp, commercial auto, and coverage for their equipment. Who this is for: owners of fire, smoke, and soda blasting cleanup and contents restoration companies.
The short version
- Soot, smoke, and ash are named pollutants in your general liability policy, so a smoke damage claim can be denied there.
- Contractors pollution liability is the policy that pays soot and smoke claims, and it should also cover mold from the water used to put the fire out.
- If you pack out and store a customer's contents, general liability will not pay for damage to them. That needs a separate add-on.
- Tear-out on older buildings can disturb asbestos, which is its own exposure. Tell your broker if you do demolition or rebuild work.
- Illustrative cost for a small fire restoration firm is about $3,500 to $9,000 a year for pollution coverage at a $1,000,000 limit, on top of your general liability.
Why won't my general liability policy pay for smoke damage?
Because the residue a fire leaves behind, soot and smoke, is named in the pollution exclusion of nearly every general liability policy. Keep general liability for a slip and fall on your job. It will not pay for the claims below.
| Where it is | What it means in plain English |
|---|---|
| Pollution exclusion in the standard policy (CG 00 01) | Soot and smoke are named pollutants, so a claim that your cleanup spread residue or that a customer got sick can be denied. |
| Fungi or bacteria exclusion (CG 21 67), a separate page | No payment for mold. Fires are put out with water, and that water grows mold, so this exclusion reaches fire jobs too. |
| Care, custody, or control exclusion | No payment for damage to a customer's contents you packed out and are storing or cleaning. |
What does pollution coverage add for a fire restoration company?
The policy is called contractors pollution liability, which is coverage for fumes, dust, spills, or mold caused by your work. For a fire restoration firm it usually pays for:
- Soot, smoke, and ash claims, including a claim that your cleanup pushed residue into clean rooms.
- Mold from the water used to fight the fire, which is a common second claim on a fire job.
- Bodily injury and property damage to customers and neighbors from a release your work caused.
- Legal defense. On most pollution policies, defense comes out of the limit rather than on top of it the way general liability defense does. Ask which way your quote is written.
If you use ozone or hydroxyl machines for odor and a customer says the treatment made them sick, that is the kind of claim this policy is built for. If you also inspect and certify that a home is clean, add professional liability for a mistake in that judgment.
What about asbestos and the belongings I store?
Two gaps trip up fire restoration owners. First, tear-out and rebuild on older buildings can disturb asbestos or lead, which many pollution policies handle differently or exclude. Tell your broker exactly what you tear out, so the wording matches the work. Second, when you pack out furniture, electronics, and documents to your shop, the law calls you the holder of that property, and general liability will not pay if it is damaged. See whether your restoration company needs coverage for customer belongings.
What are the other policies a fire restoration company needs?
| Policy | What it does for you |
|---|---|
| Workers comp | Pays medical bills and lost wages when a tech is hurt, and pays if an employee sues you. |
| Commercial auto | Covers your vans, box trucks, and trailers used to haul crews, contents, and debris. |
| Equipment coverage | Covers your air scrubbers, ozone machines, and cleaning gear off site and against theft. |
| Contractors pollution liability | Pays the soot, smoke, and mold claims general liability denies. |
How much does insurance cost for a fire restoration company?
These numbers are illustrative. Your revenue, state, service mix, and claims history set the real price. The figures below are for the pollution policy only, and sit on top of your general liability, auto, and workers comp.
| Business | Illustrative annual pollution cost, $1,000,000 limit |
|---|---|
| Owner plus 1 to 4 techs, residential fire and smoke | $3,500 to $5,500 |
| 5 to 15 techs, fire, smoke, and contents work | $5,000 to $8,000 |
| 15 or more techs, large loss and commercial rebuilds | $7,000 to $12,000 |
See how to find cheaper pollution coverage.
How do I buy it and how long does it take?
Through a broker. Stand-alone pollution and equipment policies come from specialty insurance companies that do not sell online. Plan on 2 to 10 business days, a short application, and your claims history report, which is called your loss runs.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A fire and smoke restoration company in Georgia with six techs cleans a kitchen fire in a 1960s home. They wipe down soot, run an ozone machine for odor, and pack out the family's furniture. They carry general liability, auto, and workers comp, but no pollution or customer property coverage.
What went wrong: The homeowner says the ozone treatment left a chemical smell that triggered her asthma, and that soot was tracked into two bedrooms that were untouched by the fire. Separately, the packed-out furniture is damaged when a rack collapses at the restoration company's shop.
What it cost: The claims come to about $47,000. The general liability insurer denies the soot and odor claim under the pollution exclusion, and denies the furniture under the care, custody, or control exclusion. Without pollution coverage or customer property coverage, the owner pays roughly $47,000 himself.
The fix: For fire restoration firms, soot and odor claims and damage to stored contents are the two most likely large claims, and both sit outside general liability. Price pollution and customer property coverage before a job forces the issue.
Frequently asked questions
Q: What insurance does a fire and smoke restoration company need?
General liability, plus contractors pollution liability that covers soot, smoke, ash, and the mold that follows firefighting water. Most firms also add coverage for stored contents, workers comp, commercial auto, and equipment coverage.
Q: Is smoke and soot cleanup covered by pollution insurance?
Yes, that is the core reason fire restoration firms buy it. Soot and smoke are named pollutants that general liability denies, so contractors pollution liability is the policy that pays claims from spreading residue or a customer getting sick.
Q: Who pays if my ozone or hydroxyl treatment makes a customer sick?
That is the kind of claim contractors pollution liability is built for, since it treats the treatment as a release affecting the customer. General liability usually denies it under the pollution exclusion, so do not rely on that policy for odor work.
Q: Does my policy cover asbestos I disturb during fire tear-out?
Not automatically. Many pollution policies handle asbestos and lead differently or exclude them, so tell your broker exactly what you tear out. The wording has to name that work for the coverage to be there.
Q: Do I need coverage for the contents I pack out and clean?
Usually yes. General liability will not pay for damage to property in your care, so a customer's furniture, electronics, or documents at your shop fall on you unless you add coverage for customer goods.
Q: I also rebuild after the cleanup. Do I need different coverage?
Yes. Rebuild work is contracting, so you want general liability written for construction and, on larger jobs, a policy for the structure under construction. Tell your broker you do both cleanup and rebuild so nothing falls between the two.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Pricing pollution coverage for soot and smoke, equipment coverage, and coverage for stored contents for fire restoration firms is a routine part of what we do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.