Information on premises pollution liability insurance including costs, coverages & options. This policy covers pollution conditions at a covered location and offers coverage for bodily injury, property damage, environmental damage, cleanup costs & legal expenses.
Premises Pollution Liability Insurance
There is a growing awareness of how hazardous materials not only effect the environment, but affect our physical health. They pollute groundwater and they air, which can lead to grave illnesses, such chronic respiratory conditions and even cancers.
Should it be determined that a company has, in fact, polluted the environment, the owners of that company could be looking at serious legal ramifications. Don't assume that just because you have a general commercial liability insurance policy that you and your business are protected. Standard policies often exclude coverage for pollution, including the cost of cleaning it up, as well as any legal fees or medical expenses that may be incurred.
If your company does escape pollutants and your general liability insurance doesn't offer coverage, you could be looking at serious financial turmoil that has the potential to put your business - and you - in ruin. How can you ensure that you are properly protected? - By purchasing a premises pollution liability insurance policy.
What Does Premises Pollution Liability Insurance Cover?
This type of policy covers any claims that are made against your business by third parties that claim pollution from your company caused bodily harm and/or property damage. Premises pollution liability insurance will cover you while you are working on a job, and it will also cover you once you have completed it. Should there be any issues with hazardous materials in the midst of a project or thereafter, a pollution policy can shield you from liability problems.
For example, if you're a contractor and you hit a gas line while excavating, or you dump material into a landfill and that material later damages the water supply, your pollution policy will cover the costs associated with the incident. Most premises pollution liability insurance policies cover the following:
- Legal fees
- Cleanup costs
- Transfer of property (if land or a building you purchase was polluted by the previous owner).
- Cleanup errors
- Catastrophic (a sudden explosion, for example) and non-catastrophic (pollution that occurs over a prolonged period of time) coverage
Do You Need Premises Pollution Liability Insurance?
If you own a business and you know you are working with hazardous materials, such as asbestos abatement, it's pretty obvious that premises pollution liability insurance coverage is a good idea. However, even if your business isn't directly involved with toxic waste but could potentially cause pollution, it's a good idea to have.
Should you own a pool company, for example, and your crew hits a gas pipe while digging the ground for an installation, you could be held liable for any property damage, injuries, or pollution that occurs as a result.
How Much Does Premises Pollution Liability Insurance Cost?
The cost for premises pollution liability insurance varies from business to business. Several factors can affect the cost of a policy, and these factors are all taken into consideration when determining what the premiums will be. For instance, a company that uses minimal hazardous chemicals will have lower premiums than one that uses a large amount.
Some of the factors that are used to determine the cost of a premises pollution liability insurance policy include:
- The kind of business that is being insured.
- The type of toxic chemicals the company uses.
- The type of hazardous materials the company uses.
- How the company disposes of hazardous materials.
- How close the company is to residential communities.
The only real way to determine how much a policy will cost is to actually receive quotes from insurance providers. When weighing your options, remember that cost isn't the only thing you should consider; you also want to make sure that you receive the coverage that you really need. Paying less upfront might be nice, but if the policy doesn't provide the coverage you need, should an incident occur, you could end up paying significantly more in the long run.
Premises Pollution Liability Insurance - The Bottom Line
We hope this article on premises pollution liability insurance has been informative. Owners of various types of businesses - large and small - are at risk of causing damage as a result of pollutants. Damage can impact the health of employees, bystanders, properties, and the environment. The cost of such damage can be devastating to a company.