What is Pollution Liability and who needs it?

Pollution Liability coverage is for bodily injury, property damage, defense costs, and cleanup expenses derived from pollution based events. Fact: Most Commercial General Liability packages do not include Pollution Liability and, furthermore, the majority of them have an Absolute Pollution Exclusion.  Common Pollution Based Liability Events include: Number One: 3rd party liability. If you sub out grading work or dirt removal and it’s unknowingly contaminated, the chemicals are often spread to a larger area where the dirt is moved to or to  a location where it is re-used.  There have been many cases like this in recent years because of naturally occurring hazardous substances, such as minerals that contain asbestos, mercury, etc. . Number Two: Construction equipment on a project site has hydraulic fuel lines cut by vandals or chewed by squirrels, causing fuel to leak out and contaminate the soil.  Number Three: Accidentally puncturing an underground gas line or storage tank causing a spill into the soil and groundwater.  Pollution Liability is continuing to grow in popularity as the social responsibility response continues to strengthen.  Sustainability is becoming more relevant because of all the pollution escaping into our environment every day.  You can hang your hat on the fact that more money and power is being granted to the EPA and other federal agencies to help enforce pollution compliance.  In the event of a company going bankrupt after causing an environmental disaster, pollution liability will help the victims receive compensation and may help fund increased regulatory cleanup costs and much more.  To protect you, your company, your employees and the victims of pollution liability related events, it’s important to have a solid pollution liability policy.  Please contact us with further questions on this or any other risk management topic. We will see you again soon!