Pollution Insurance

Pollution Coverage is insurance that covers any costs related to pollution. This type of coverage exists to protect against losses and damages from environmental accidents. It can exist to cover the insured from liability resulting from third party injury claims, legal fees, bodily injury, property damage, interruption of business, as well as the cost of clean-up and restoration. These coverages used to exist in general liability and property policies, but became exclusions in those policies later due to the rise in Asbestos claims. Although Pollution Liability may not be a frequently occurring claim for most businesses, when a claim does arise, it can be extremely costly to the point of bankrupting a business.

smoke stack pollution

Who Needs Pollution Insurance?

Pollution Insurance is often a good idea for small and large business owners, any type of contractor, and any company or person who may be transporting potentially hazardous materials. Businesses that handle any kind of chemicals are especially susceptible to these exposures. For instance

  • Any type of contractor who handles excavations/digging/drilling etc., electrical and plumbing work, roofing because of pollutants like tar, demolitions, and more need Contractors Pollution Liability Insurance to mitigate their risk exposures.
  • Property and business owners whose building sites may contain or have a history of containing potential pollutants. Gas stations, hair salons, landfills, goods manufacturers, and more. 
  • Architects, Engineers, and Site Plan Developers should carry Pollution Liability to their Errors and Omissions coverage in case of a disaster where a third party may blame their plans of causing the pollution damages. 
underground tubing pollution

What Does it Cover?

Generally speaking, three main types of coverage exist to protect all parties involved in the event of a pollution exposure:

Contractors Pollution Liability (CPL): CPL covers contractors in the event of accidents, negligence, equipment failure, etc., in the event that these actions cause property damage or bodily injury to a third party. It will provide coverage for medical costs, restoration of property due to damages, and legal defense fees. A contractor can opt to carry the coverage all the time, or only for certain projects.

Errors & Omissions Liability: Protection for professionals like engineers and architects who may commit mistakes in the process of providing their services. 

Site/Premises Pollution Liability: Covers claims arising from pollution releases at, on, or emanating from a specific location. Will cover the owner of the site from clean-up costs for the actual site and any other land, water or natural resources affected, bodily injury claims from third parties, business interruption, and more.