Information on transportation pollution liability insurance including costs, coverages & options. This policy offers protection for pollution caused during transportation of products & can include loading and/or unloading if the cargo creates a pollution condition.
Transportation Pollution Liability Insurance
Whether you own a business that manufactures products or you purchase products from a supplier and have them shipped, you put a lot of work into what you do.
It would be a shame to have it all go down the drain because of an issue that arose while your products were in-transit.
With transportation pollution liability insurance, you can protect your business from any potential incidents that occur during the transportation of your products that result in pollution.
What Is Transportation Pollution Liability Insurance?
This type of commercial insurance policy is specifically designed to protect business owners who ship products that could possible pollute the environment while they are in-transit. Also known as "over the road" insurance, this type of coverage protects materials that are shipped, transported or delivered, either by your company or by a carrier you employed to ship, transport, or deliver on your behalf. It can also offer loading and unloading protection, if there is a chance that your cargo could result in pollution during either process.
For example, let's say you own a company that manufactures industrial cleaners. You hire a freight company to ship your products to your buyers, but during transit, the freight truck overturns and the drums of industrial soap open, spill, and flow into a storm drain. Your company will be held liable for the pollution, including any damages incurred, the cost of cleanup, as well as any legal fees that may arise.
The costs of such an incident could be exorbitant. While you might have general liability insurance, don't assume that it will cover this type of situation; most general liability policies of exclusions, and pollution tends to be one of them. If you have a transportation pollution liability insurance policy, however, you would be protected by an event like the one described above.
What Does Transportation Pollution Liability Insurance Cover?
While coverage will differ from policy to policy and from provider to provider, in general, transportation pollution liability insurance covers the following:
- Costs associated with cleaning up spills that occur while products are in-transit.
- Any property damage that results from the pollution of your products while they are being transported.
- Injuries sustained to bystanders as a result of any pollution that was created while your goods were being shipped.
- Legal fees, including the cost of an attorney, court fees, and settlement fees.
This type of insurance offers protection for the above for materials or goods that are being transported, shipped, or delivered by either your own company or by a company that you have hired on the behalf of your company. Depending on the nature of the products, transportation pollution liability insurance may also offer coverage for loading and unloading.
For example, if you are shipping industrial cleaners and there's a risk that the barrels could spill while they are being loaded and unloaded, your policy may cover any issues related to the pollution that such an event might cause.
Are there Additional Coverage Options?
You can add additional coverage to a standard transportation pollution liability insurance policy. Some additional coverage options include:
- Coverage for pollution that occurs on your premises.
- Coverage for a third party carrier.
- Pollution liability for contractors.
How Much Does Transportation Pollution Liability Insurance Cost?
The cost for this type of insurance policy varies. Several factors can affect the cost, including:
- The type of products you are shipping.
- The amount of products you are shipping.
- The distance your products will be shipped.
- The degree of pollution your products could cause.
The only way to really determine how much this type of insurance policy will cost is by speaking with a reputable insurance company. Together, you can discuss your needs and determine how much - and what type - of coverage will work best for you.
Transportation Pollution Liability Insurance - The Bottom Line
We hope this article on transportation pollution liability insurance has been informative. If you run a business that transports materials or goods that have the potential to cause pollution while in-transit, a transportation pollution liability insurance policy is certainly in your best interest.