Pollution Risk Management for Businesses

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Pollution Risk Management

Businesses across a wide range of industries need to consider how to best mitigate their risk exposure relating to pollution. In addition to working in accordance with all applicable state and federal regulations pertaining to pollution, they need to be prepared to address any potential liability claims by carrying insurance that’s specifically geared towards covering claims based on pollution.

Ensuring Adequate Coverage

Risk management pollution policies typically need to be standalone policies. Many claims related to pollution simply won’t be covered within the scope of a general liability policy.

Policy Considerations

Generally, insurance for acts that have caused pollution can be obtained in an Environmental Impairment Liability Insurance policy. EILI coverage is especially important for companies that are engaged in a business that involves the use of hazardous or toxic materials. However, virtually any type of company could be subject to liability exposure for claims related to pollution. Any business engaged in transportation, manufacturing, or construction is at risk for environmental liability.

Having a policy endorsement that is dedicated to claims for pollution liability is an essential part of a comprehensive risk management strategy. It’s preferable to work with an insurer that is experienced in advising clients about their risk exposure and helping them build a commercial package that includes sufficient coverage in the event of a claim relating to damages caused by pollution.

This post was written by , posted on July 9, 2020 Thursday at 8:32 am