What is Environmental Pollution Liability Insurance?
Environmental Pollution Liability Insurance provides coverage for bodily injury, property damage, and remediation expenses arising out of the release of contaminants into the environment.
This specialized insurance is available for Contractors, Environmental Consultants, Fixed Site Exposures, Storage Tanks, Environmental Services and many other exposures. Each policy is crafted to provide coverage for exposures such as gas leaks, contaminated soil, oil spills and many other exposures that can damage the environment and create large cleanup costs.
Why Have Environmental Pollution Liability Insurance?
Claims arising from pollution incidents are usually excluded from a General Liability policy. This means that even contractors that do not specialize in environmental work are at risk for a claim. Since these risks are not covered, contractors usually have to absorb legal and clean-up costs which can sometimes total over $100,000. Building contractors working on older structures have the risk of dealing with asbestos, which Pollution policies can cover. Environmental Pollution policies can pay legal and clean-up costs, as well as cover all current projects and even completed projects.
Environmental Pollution Claims Example
A decision made by a dry cleaning service prior to 1975 to discharge dry cleaning solvents and laundry wastes into a seepage lagoon came back to bite them ten years later when citizens began complaining about water quality. The dry cleaning owner ended up negotiating a settlement with the state in which he was required to construct a deeper well and face penalties. The total cost claims and cleanup totaled $4.5 million.
Coverage May Include
- Monoline E&O, CPL or GL for as little as $2,000
- Combined minimum premium for E&O, CPL and GL is $2,500
- Capacity up to $15 million
- Deductibles as low as $2,500 can include:
- Blanket AI (ongoing and completed operations)
- Automatic waiver of subrogation
- Automatic primary/non-contributory additional insured status
- Blanket 1st & 3rd party transportation pollution
- Non-owned disposal site coverage (NODS)
- Separate defense limit in addition to the defense payments provided within the limit
- Lead, asbestos and mold coverage can be included
- Pre-existing conditions can be covered
- Storage tanks as low as $350
- Non-Owned Disposal Site Coverage (NODS)
- Claims Made & Occurrence Forms