Many businesses in almost every industry are at risk for environment-related claims and should transfer this risk to an insurance company using Environmental Insurance coverage. The Environmental Insurance Policy offers very broad coverage, allowing coverage for many types of pollution claims.
In many cases, the pollution coverage can be endorsed onto the General Liability policy or it can be purchased as a monoline (stand alone) policy. Target classes for this coverage include:
• Construction debris landfills
• Recycling facilities
• Solid waste landfills
• Waste Incinerators
• Composting facilities
• Warehousing
• Manufacturing facilities
• Food processors
• Bulk storage facilities
• Chemical manufacturing
Environmental exposure for businesses has expanded rapidly, and state and federal legislation has responded with severe fines and penalties for those businesses found to be in violation of state and federal statutes. The source of most environmental claims is pollution, which involves cleanup and restoration. All businesses operating in any industry are subject to the Clean Water Act and the Clean Air Act and must comply with the terms of the acts in order to operate. In fact, industries have been inundated over the last two decades with legislation:
• The Motor Carrier Act of 1980 – regulates the trucking industry
• Toxic Substance Control Act – regulates the chemical manufacturing industry
• Resource Conservation and Recovery Act – regulation of hazardous waste
• Comprehensive Environmental Response, Compensation and Liability Act – legislation to facilitate the cleanup of abandoned sites containing hazardous materials
To mitigate the significant risks related to environmental exposure, liability policies may provide coverage for some or all of the following:
1. Site-specific environmental impairment liability coverage
2. Contractors environmental impairment liability
3. Environmental professions E&O coverage
4. Asbestos and lead abatement contractors liability
5. Environmental remediation coverage
6. Remediation stop-loss coverage
7. Storage tank insurance
The Environmental Liability policy is built on coverages required according to the specific industry you operate and should be programmed by an experienced agent or broker who is intimately familiar with the risks involved and the coverage required to mitigate those risks that can easily go into millions of dollars.