You need contractors pollution liability with mold and bacteria covered, usually at $1,000,000 to $2,000,000. If you also test, inspect, or write cleanup plans, add professional liability. For a restoration firm, pollution is not a side risk, it is the whole job. Who this is for: water, fire, mold, asbestos, lead, and sewage cleanup companies.
The short version
- Your general liability policy excludes pollution and excludes mold. For a cleanup firm, that is most of what you do.
- Contractors pollution liability is the core policy. Make sure mold and bacteria are covered, and check whether mold has a lower cap.
- If you test, inspect, or sign off that a job is clean, add professional liability. Being wrong about a job is not a pollution claim.
- Some states require insurance for a mold or asbestos removal license, and customers usually ask for $1,000,000 or more.
- Illustrative cost for a small remediation firm is about $4,000 to $12,000 a year at a $1,000,000 limit.
Why isn't my general liability policy enough for restoration work?
Because the two things you touch every day, contaminants and mold, are the two things nearly every general liability policy excludes.
| Where it is | What it means in plain English |
|---|---|
| Pollution exclusion in the standard policy | No payment for injury, damage, or cleanup from a release of pollutants, including the ones you were hired to remove. |
| Fungi or bacteria exclusion, a separate page | No payment for mold or bacteria claims of any kind. |
The standard form gives a few narrow things back, such as fumes from materials you bring inside a building. None reach you, because the same exclusion separately bars claims from work performed to test for, clean up, remove, or contain pollutants. That describes your whole business. Keep general liability for slip and fall claims. Add the policies below for the actual work.
What does pollution insurance cover for a remediation company?
Contractors pollution liability is the core policy. Confirm each of these before you buy:
- Mold and bacteria coverage, in writing. Check for a cap lower than the rest of the policy, called a sublimit. Many contracts want at least $250,000. Ask whether legal defense comes out of that cap. On most pollution policies it does.
- Asbestos and lead, if you remove either one (abatement). Some policies exclude them unless you ask.
- Cleanup costs, including cleanup a government agency orders.
- Hauling and disposal site coverage, so a spill on the road or a landfill that later needs cleanup is covered.
Also ask whether the policy is occurrence (it covers events that happen while it is active, even if the claim comes later) or claims-made (it pays only for claims reported while it is active, and only for work done after a set start date). Stand-alone pollution policies for remediation firms are often occurrence. When pollution and professional liability are combined, the whole policy is usually claims-made, so keep the original start date when you switch insurers.
Do I also need professional liability?
If your firm inspects, tests, writes cleanup plans, or signs off that a job is clear, yes. When a customer says your plan was wrong, that is a claim about your advice, not a release of a pollutant, and a pollution policy may not respond. Professional liability covers mistakes in your advice, testing, or plans. Many specialty insurers sell one combined policy.
What do contracts and licenses require?
| Who is asking | What they usually want |
|---|---|
| Insurance companies, and the claims firms they hire, that send you jobs | $1,000,000 of contractors pollution liability with mold, plus general liability and workers comp |
| General contractors and property managers | $1,000,000 to $5,000,000, with the owner and general contractor named on your policy so they can use it if your work gets them sued |
| State licensing boards for mold or asbestos work | Some states require proof of insurance to issue or renew a license. The amount varies. |
See where to get pollution insurance fast.
What does pollution insurance cost for a restoration company?
More than ordinary trades pay, because the work is the risk. These figures are illustrative. Revenue, work mix, state, and claims history set the real price.
| Firm | Illustrative annual cost, $1,000,000 limit |
|---|---|
| Water and fire restoration, little mold, 2 to 8 employees | $4,000 to $7,500 |
| Mold remediation as a main service, 5 to 15 employees | $6,000 to $12,000 |
| Asbestos or lead removal | $8,000 and up, and fewer insurers will quote |
| Adding professional liability in a combined policy | Often $1,000 to $3,000 more than pollution alone |
An annual policy is almost always right here. See project versus annual pricing and cheaper pollution coverage.
What will the application ask me?
Expect a longer application than other trades get. You will break down revenue by type of work, describe your containment procedures, list your disposal sites, and hand over your claims history report. Good written procedures lower your price.
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 mold remediation company in Florida with eight employees cleans up a bathroom leak in a condo. The owner bought general liability online and never added pollution coverage.
What went wrong: Four months later mold is back inside the wall and has spread to the bedroom. The unit owner says the containment failed, moves out, hires a lawyer, and claims the rebuild plus medical bills.
What it cost: The rebuild is about $70,000 and the medical and relocation claims add roughly $15,000. Her insurer denies under the pollution and fungi exclusions and does not pay for a lawyer. She settles for $62,000. A pollution policy with mold coverage would have been an illustrative $7,800 a year.
The fix: For a cleanup company, general liability alone is a gap with your name on it. Buy pollution coverage with mold included before the first job, and add professional liability if you also test or clear jobs.
Frequently asked questions
Q: What pollution insurance does my restoration or remediation business need?
Contractors pollution liability with mold and bacteria coverage, usually at $1,000,000 to $2,000,000. If you also test, inspect, or write cleanup plans, add professional liability. Many specialty insurers combine both.
Q: Why does a lower cap on mold claims matter?
A pollution policy often caps mold claims below the rest of the limit, for example $250,000 on a $1,000,000 policy. That cap is called a sublimit. Mold is your main claim, so a low one leaves you short. Ask whether defense costs come out of it.
Q: Do I need professional liability if I only do the cleanup and someone else tests?
Usually not, as long as you never write the plan, choose the method, or declare a job clear. Ask one question anyway: does your pollution policy exclude professional services? Many do, and a customer who says your containment was designed wrong lands in the gap between the two policies.
Q: Does my state require insurance for a mold or asbestos removal license?
Some states do, and the type and amount vary. Check with your state licensing board before you apply or renew. Your broker can tell you which policies the board accepts.
Q: Does the policy cover a job I finished last year?
On an occurrence policy, yes, if the policy was active when the work was done. On a claims-made policy it depends on the start date printed in the policy and on reporting the claim while the policy is active.
Q: Can I put one big removal job on its own policy?
Yes, but it is rarely cheaper for a cleanup company. An annual policy covers every job you run that year. Buy a project policy only when one owner wants a limit far above your normal program.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Building the right pollution and professional liability program for restoration and remediation firms, and getting it quoted in specialty markets, is a placement we handle for cleanup companies.
- 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.