Virtually every industry has pollution exposure, and environmental insurance is essential protection that standard lines clients cannot afford to be without. In the last 5 years, alone, Environmental Protection Agency (EPA) enforcement actions have cost companies more than $26 billion dollars. Many of these liabilities go uninsured without a specialized environmental program.
Many general liability policies contain a standard pollution exclusion which prohibits coverage for bodily injury or property damage resulting from “the actual, alleged or threatened discharge, dispersal, seepage, migration, release, or escape of pollutants” from the insured's premises. Combining general liability and pollution liability creates a cost-effective policy that helps eliminate potential errors and coverage gaps that may result from having multiple policies or an industry standard general liability policy.
Target Classes
- Solutions available for a wide range of Manufacturers, Wholesale Distributors and Processors
Highlights
- Specific benefits over a standard general liability policy may include:
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- General Liability:
- Coverage for Bodily Injury, Property Damage, Personal Injury and Advertising Injury for claims arising from an insured's premises, operations and products on an occurrence or claims-made basis
- Includes automatic coverage for Products Pollution
- Per location general aggregate
- Newly acquired entity coverage up to 180 days
- Broad form Named Insured, if more than 50% ownership interest
- Legal defense under Commercial General Liability coverage is in addition to the limit of liability
- First dollar or deductible/Self-Insured Retention (SIR) options are available
- Coverage is provided on a non-auditable (flat rate) basis
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- Pollution Liability:
- Includes automatic coverage for Products Pollution and Sudden & Accidental (Bodily Injury and Property Damage) pollution events
- Legal defense under Pollution Legal Liability coverage is provided within the limit of liability
Broader Pollution Liability Coverages are Available and Include:
- Coverage for on-site cleanup of pollution conditions triggered by discovery or third-party claim
- Off-site third-party bodily injury, property damage and cleanup costs arising from pollution conditions migrating from covered locations
- On-site third-party bodily injury and third-party property damage arising from pollution conditions
- Pollution Liability coverage for gradual pollution conditions
- Coverage for Underground Storage Tanks
- Contractors Pollution coverage on an occurrence basis
- First-party coverage for Business Interruption due to on-site pollution conditions
- Coverage for pollution conditions resulting from Transported Cargo
- Transportation includes auto, air, rail, or watercraft
- Coverage for third-party claims for on-site cleanup at Non-Owned Disposal Site locations
Key Benefits
- A typical commercial general liability policy contains, or is endorsed with, an absolute or total pollution exclusion. The interpretation of the exclusion and the definition of "pollutants" have been broad, leaving Insured's without coverage for pollution-related losses. A combined program helps to fill this coverage gap by including valuable coverage for products pollution and Sudden & Accidental (Bodily Injury and Property Damage) pollution events under the policy, with the ability to apply for as much or as little site-specific pollution legal liability coverage as needed
- Reduce potential coverage gaps or overlaps that may exist when coverage is purchased through separate insurers
Policy Terms
- Policies are structured annually
Retentions
- No General Liability minimum
- $25,000 Pollution Liability minimum
Premiums
- Typical premiums begin around $20,000 for the first $1M per loss/$1M aggregate limit of liability
Download this fact sheet
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Greg Steinman
Eastern Region, VP
212.293.3941
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Jim Hamilton
Western Region, VP
303.820.2626
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