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Environmental Liability Insurance Customized to Client’s Needs

Posted on: August 18, 2015 by Caitlin Morgan

Companies across many industries face pollution risks, either through liability to other parties or due to property contamination, which is why it’s so important that they secure the proper Environmental Liability insurance policy to address their specific exposures. Insurance policies can provide coverage for the costs of cleanup efforts, as well as the costs of lawsuits and related legal fees from third parties. Depending on the policy, emergency response costs and business interruption costs can also be covered, as coverage for contractor costs, cleanup of specific sites, and remediation related to storage tanks.

For example, Contractors Pollution Liability (CPL) insurance is available to contractors who need to protect themselves from environmental claims relating to their activities at job sites. Coverage is available for both third-party liability claims and first-party claims to remediate on-site conditions, and provides insurance for pollution risks at sites that the policyholder may not own. Construction projects are usually associated with this type of coverage, but companies working on other types of projects can benefit as well, such as those that regularly deliver or install materials at various locations. CPL insurance usually terminates once a defined project is finished, unless special “completed operations” coverage is also purchased.

Site-Specific Liability insurance addresses property not owned by a policyholder, such as a waste disposal site. This type of insurance can also be beneficial to companies that regularly buy and sell property as part of their business, or companies involved in a merger or acquisition. Again, first-party and third-party coverage can be purchased, as well as business interruption coverage.

Additionally, certain businesses, such as asbestos and lead paint abatement companies, have very specific environmental risks that are usually addressed by General Liability insurance policies customized to their activities. Also, environmental engineers and consultants often purchase E&O coverage, or Professional Liability insurance, to protect themselves against third-party claims alleging deficiencies in performing their professional duties. In addition, remediation stop-loss insurance is a specific type of first-party coverage, designed to insure against the risk that an environmental cleanup at a specific location will exceed cost estimates.

Wholesaler and MGU Caitlin Morgan can assist you in securing the right Environmental Liability insurance policy for your insureds. Moreover, our solutions are supported by our carrier’s partner team of dedicated environmental experts, underwriters, engineers and attorneys experienced in identifying risks and how to best protect against them. Give us a call at 877.226.1027.

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Posted in: blog Environmental Liability