Pollution Liability: Are You Covered?

Increased awareness of how we use our environment is extremely beneficial. We use hazardous materials and pollutants on a regular basis, and it’s our responsibility to ensure that we do our part to keep the planet safe.

If your business needs to address claims involving pollution-related issues on owned or occupied property, make sure you check over your general liability insurance and commercial property policies in order to verify that you will be covered. If not, you may need to look into additional coverage through pollution liability insurance.

What Is Pollution Liability Insurance?

Pollution liability insurance coverage handles pollution-related first-party property and third-party liability losses.

First-party property losses are addressed by pollution liability policies designed to protect insureds from pollution losses for property that they own, rent, or occupy.

Two types of policies cover third-party liability pollutions losses:

• Contractors Pollution Liability coverage provides both indemnity protection and a defense of claims in which a pollution incident is alleged to be the fault of an entity engaged in building, developing and general contracting.
• Errors and Omissions coverage protects architects and engineers from liability related to allegations that they failed to render professional services which resulted in a pollution related loss. Pollution liability insurance for truckers is also important when taking into account the hazardous materials many truckers haul throughout the country.

Why it’s Essential

Professionals handling toxic and hazardous materials whose workplace involves environmental issues or owning/occupying premises with environmental issues need pollution liability insurance. Examples include:

• Property owners and tenants whose buildings and land have a history of having pollutants on the property;
• A building on land that had an underground storage tank that leaked fuel oil before it was removed, contaminating the soil;
• Contractors such as roofers who handle pollutants like tar;
• Architects and engineers who are involved in projects which have issues related to pollutants.

Property inspections may miss underlying hazardous waste and could be discovered years later. Environmental laws are always changing and you don’t want to be caught without proper liability protection. After the mid-1980s, pollution liability has been typically excluded under standard commercial general liability policy, making separate coverage for pollution liability necessary.

Environmental clean-up projects can cost millions and lawsuits could arise where a third party could be injured by toxic substances produced by your work. Business owners and independent contractors must protect financial interests by obtaining pollution liability.

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.