Does your Business need a Pollution Liability Insurance Policy?

Most people don’t realize that pollution liability is not covered under a general liability policy. Here we share some important information so you can make an informed decision about whether you need pollution liability insurance for your business.

Pollution Liability Insurance, also commonly referred to as “environmental insurance,” helps protect businesses from unexpected pollution exposures that may not be covered by standard casualty and property policies.

What does a Pollution Liability Policy cover?

Pollution Liability Insurance policies cover claims from third parties against bodily injury and property damage caused by hazardous waste materials released during a company’s business operations. This insurance covers you while you are completing a project, and also covers your completed operations.

Who needs a Pollution Liability Policy?

Companies whose business and operations involve risks to hazardous waste exposure, such as waste depository or asbestos abatement, need pollution liability insurance. Even if you own an industrial site or operation not involved in hazardous waste, pollution liability insurance is an important protection to have. Some situations that can be covered by our policy: 

• The company manages material, product or equipment that could contaminate.
• If your business’ property and employees may be exposed to contamination. This also includes companies that handle animals.
• If there’s the possibility of humidity and/or water infiltration within the offices or buildings.
• The insured company is established on a piece of land, farm or near a body of water.

Even though most owners inspect the properties they buy before purchasing, you may have missed some underlying hazardous waste that could be discovered years later, leaving you potentially responsible. Also, environmental laws are always changing, and you don’t want to be caught without the proper liability protection.

Remember, you can’t add this policy to your program after an incident occurs at one of your sites or operations – so now is the time. 

Business owners and independent contractors have to make sure their financial interests are adequately covered – if you think you may have a risk of hazardous waste exposure in your business operations, contact our insurance experts to discuss whether or not you need pollution liability insurance. Get Fulcro.