Even a minor pollution spill may be too expensive to cover out of pocket.
Pollution Liability Insurance
Pollution Liability Insurance is a type of coverage created specifically to manage the costs associated with pollution clean-up, as well as to cover liability claims for pollution-related injuries, illnesses or deaths. Policies cover any type of small-scale pollution that causes contamination of soil, groundwater or property. They also provide coverage for air-borne contaminants like smoke and emissions. Some key aspects of pollution insurance coverage include:
Legal Defense Fees
Pollution insurance companies will provide your company with attorneys who specialize in these matters to defend you in a pollution-related lawsuit. Your policy can also cover the costs of any other related legal fees and court costs.
If your company is required by law to clean up contaminants, this coverage will compensate you for a portion of the costs. Many insurers will allow you to buy stop-loss policies that limit the amount that your company will be responsible for during the clean-up. This is beneficial if additional pollutants are identified in the clean-up process, potentially escalating the costs.
If your business uses chemicals or hazardous materials, there are two types of coverage available:
1. Catastrophic coverage: For a sudden, pollution-inducing event such as a fire or explosion.
2. Non-catastrophic coverage: If pollution occurs over a long period of time and affects neighboring businesses or residents.
Interested in an insurance proposal at no obligation or cost?
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