Pollution Liability Insurance

Almost any business may be accused of polluting the environment. Pollution liability insurance is a specialized form of liability coverage that helps businesses manage pollution cleanup costs and defend themselves against liability claims related to pollution. Most policies provide protection for claims related to small-scale contamination of groundwater, soil, or air. Businesses that need coverage for potential large-scale contamination might be better off with environmental impact liability insurance.

Any business that uses chemicals or materials may want pollution insurance. Not only should businesses that work with materials that are known to be harmful consider purchasing coverage, but even those that use chemicals or materials thought to be safe might want a policy, such as contractors, landscapers, pool service companies, automotive repair shops, and dry cleaners.

The coverages included in pollution insurance policies can often be tailored to a particular business’ specific needs. Some of the coverages that a policy might offer include coverage for legally mandated cleanups of contaminants that have leeched into the environment, coverage for environmental contamination that occurs during a business’ normal operations, coverage for cleaning up transferred property that was contaminated by a previous owner, and coverage for lawsuits and settlements arising from covered incidents. Companies that provide environmental consultation or cleanup services may tailor their pollution policy to also include errors and omissions coverage. Errors and omissions coverage might provide protection if a business makes a mistake in its work. Many policies also offer coverage for harmful chemicals and materials that were used in the past before their effects were known.

Insurers consider a number of factors when calculating pollution policy premiums. A few of the items they take into account are: What industry a business is in, what chemicals and materials a business uses, how a business disposes of any hazardous waste, and how close a business is to neighborhoods.