SWG ENVIRO: Changes to the CCDC 2 Stipulated Price Contract in December 2020 requires contractors to hold pollution liability insurance

May 2021

The Canadian Construction Documents Committee (CCDC) is a national joint committee responsible for the development, production, and review of standard Canadian construction contracts, forms, and guides.


The CCDC 2 Stipulated Price Contract is a common form of specified price contract which is regularly used within the Canadian construction industry.


In December 2020, the CCDC updated the CCDC 41 (the insurance requirements section of CCDC 2) and for the first time made it a requirement that contractors “have limits of not less than $5,000,000 per occurrence for bodily injury, death, and damage to property.”


This move by the CCDC reflects a strong trend in the construction industry which sees contractors frequently purchasing pollution liability insurance either pro-actively or as a requirement from their client whether their client is a public or private body.


What this means for project owners, contractors, and brokers


Given these recent updates to the CCDC 41:

● Project owners should ensure their contractors carry sufficient insurance;

● Contractors should review the CCDC 41 requirements carefully together with their insurance broker to determine whether their current insurance is compliant with the updates or whether updates/amendments are required to ensure they remain compliant; and

● Brokers should be fully versed in the different types of pollution liability insurance to ensure that they’re able to identify the correct product for their clients.


SWG ENVIRO provides contractor’s pollution liability insurance which meets the requirements of CCDC


SWG has provided environmental pollution liability insurance across Canada for years, has an excellent understanding of the different products available, and has developed a specific product to meet the new requirement of the CCDC.


SWG’s pollution liability insurance products are provided on an annual/blanket or project-specific basis across industry sectors including:

● Large or small-scale construction and infrastructure projects (including demolition and dismantling, excavation, commercial and residential developments, street and road construction, etc.)

● Asbestos & mould abatement

● Landscaping projects

● Plumbing and electrical work

● Restoration, fire, and water damage refurbishment

● Septic tank installation and maintenance

● Utility operation and maintenance

● Waste collection


Highlights of SWG’s pollution liability insurance include:


SWG’s pollution liability insurance provides cover for:

● Sudden and gradual pollution events

● Clean-up costs

● Restoration costs

● Emergency response costs

● Natural resource damages

● Civil fines and penalties

● Compensation for third party bodily injury and property damage

● Punitive damages, where insurable by law

● Legal defense costs

● Completed operations

● Automatic coverage for contractors’ clients, if cover is required by contract

● Broad definition of pollutant including asbestos & mould

SWG’s optional coverage enhancements include:

● Transported cargo

● Waste disposal / Non-owned disposal sites

● Separate project-specific limits

Note: Cover is provided on a claims-made and reported basis.


For more information about our policy features, visit our website: https://swgins.com/.


Content is current as of the date of broadcast and is subject to change without notice.


Sources: https://www.ccdc.org/document/ccdc-41-insurance-requirements/