Pollution insurance, also known as environmental impairment liability, typically covers a range of liabilities and risks associated with pollution events. Because liability from pollution is normally excluded to some degree by the general liability, auto, and umbrella policies; making it necessary for insureds to seek coverage under separate “environmental impairment liability” policies.
Here are some common aspects that pollution insurance may cover:
-
Cleanup Costs: Pollution insurance often covers the costs associated with cleaning up pollution or contamination caused by your business operations. This can include soil remediation, water purification, and air quality improvement.
-
Third-Party Liability: It provides coverage for damages and legal expenses resulting from third-party claims related to pollution caused by your business activities. This can include bodily injury, property damage, and economic losses suffered by others due to pollution events.
-
Legal Defense Costs: Pollution insurance typically covers the legal expenses associated with defending against claims or lawsuits related to pollution incidents, including attorney fees, court costs, and settlements or judgments.
-
Business Interruption: Some policies may offer coverage for financial losses resulting from interruptions to your business operations due to pollution incidents. This can include lost revenue, extra expenses incurred during shutdowns, and potential relocation costs.
-
Transportation Pollution Liability: Coverage may extend to pollution incidents that occur during the transportation of hazardous materials or pollutants, including spills or accidents during transit.
-
Contractors Pollution Liability: This coverage is designed for contractors or subcontractors involved in activities that may result in pollution, such as construction, demolition, or remediation work. It protects against liabilities arising from pollution events caused by their operations.
-
Environmental Cleanup Bonds: In some cases, pollution insurance may include provisions for securing environmental cleanup bonds, which are required by regulatory agencies to guarantee funds for future cleanup activities.
Looking for pollution liability insurance? Conservation United can assist. In most cases we can provide you with quotes same day, give us a call to learn more!
