You May Need Pollution Liability Coverage

When many people think of pollution insurance, they picture large factories with billowing smokestacks, but many small businesses run the risk of pollution lawsuits. Businesses that use environmentally unsafe chemicals such as a hair salon, dry-cleaning service, garages, junkyards, manufacturers or those in the construction industry all face potential lawsuits.

Pollution insurance is created specifically to manage the costs associated with pollution clean-up and to cover liability claims for pollution-related injuries, illnesses or deaths. As damage awards for these claims can be extremely costly, having pollution insurance can protect your business from severe financial challenges or even bankruptcy.

Policies cover many types of small-scale pollution that cause contamination of soil, groundwater or property and air-borne contaminates like smoke and emissions. Many policies will even cover pollution that occurred in the past before the harmful effects of waste-products was known. Most policies include the following:

• Legal defense fees  to provide your company with attorneys to defend you in a pollution-related lawsuit
• Clean-up efforts compensate for costs if your company is required by law to clean up contaminants
• Operations coverage is for businesses that use chemicals or hazardous materials. The two types are:  Catastrophic-for a sudden pollution-inducing event such as a fire or explosion     Non-catastrophic- which covers if pollution occurs over a long period of time and affects neighboring businesses or residents
• Property transfer coverage protects property owners if they purchase a parcel of land or a building that was contaminated or otherwise polluted by a previous owner

Contact Cobb-Hall to review your pollution liability exposures and provide you with innovative solutions

Excerpts from: 2017 Trusted Choice, Independent Insurance Agents