Pollution and environmental conditions are growing exposures for many businesses, exposures that are not covered under standard insurance policies. Due to the unknown nature of many environmental conditions, a pollution claim can arise at any time, for nearly any type of company, and the cost could prove devastating.
Luckily, pollution insurance is available as a separate policy to protect companies from the risk of environmental conditions and cover the many potential costs of those exposures.
There are countless possible pollutants, environmental conditions and contaminants in any building or property, and more could be discovered at any time. Many claims that insurance companies classify as pollution-related are ones that you may think would be covered under your commercial general liability (CGL) policy. Due to the sweeping pollution exclusion on these standard policies, you may find yourself surprised when a claim is classified as pollution and not covered.
The following are just a sampling of possible pollution exposures that may affect your business:
- Toxic mold, fungus or other bacterial contamination
- Silt runoff from construction sites into public water sources
- Certain green construction techniques that can cause unforeseen pollutants
- Asbestos
- Lead-based paint
- Any contaminants or chemicals that could be released into the air or public water supply
- Aboveground or underground storage tanks
- Improper waste disposal
Currently, there are several types of pollution insurance coverage available, and most policies are customizable to fit you company’s unique risks and exposures. They often offer ancillary coverage options too, such as contamination during the transportation of goods.
Pollution is an unpredictable, costly exposure that your business needs to consider as part of its risk management program. While a lot of pollution-related incidents can be prevented, there is always the possibility for an unexpected spill, contamination or environmental condition to occur or surface. That is why pollution insurance is absolutely vital to protect your company. Call the Maguire Agency to learn more about pollution coverage available for your business.