Most people will answer the question if they need a pollution policy with – no. The word pollution expands to thoughts of landfills, chemicals, mold and many more thoughts.
Business owners need to not focus on the word pollution but focus on questions:
- Do you own a building?
- Do you have business vehicles?
- Do your operations involve a process with materials which could be classified as a ‘pollutant’?
- Are you a tenant and do not know what your neighboring business does for operations?
Everyone needs a Pollution Liability policy!
To understand why everyone needs a policy let’s look at the three different types of Pollution Liability policies: Contractors Pollution Liability, Environmental Impairment Liability, and Transportation Pollution Liability.
- Contractors Pollution Liability provides coverage for incidents that happen while in the course of their work (if they are away from the premises they own/lease/occupy). This type of policy is usually written for contractors like excavation, general contractors, roofers, plumbers, electricians, and HVAC but could also encompass other types of operations.
- An Environmental Impairment Liability policy provides coverage for all insureds that own/operate/lease real property and their operations. This coverage provides third-party bodily injury coverage and property damage coverage. It can also provide third-party business interruption and extra expense, legal defense expenses, first-party business income loss and other coverages as well. This type of coverage is typically written for any commercial property owner, manufacturing operations, warehouses, etc.
- Transportation Liability provides coverage for pollution that occur during the loading, unloading, and transportation for a spill/release/sudden upset/overturn. This can happen while the cargo is on the road, air, waterways, or on the rails.
At the core of pollution liability, everyone has exposure and determining which policy is best for your business and operations comes down to reviewing options and coverages available to you.
Please reach out to your Producer or Account Manager to determine which type of policy best fits your business.
Written by Jenny Loretz, Commercial Lines Sr. Account Manager.