Many business owners may believe that pollution liability is covered under their commercial liability insurance; however, this is typically not the case. As such, a separate pollution liability insurance plan is necessary for businesses at risk of claims against them for damages covered under this type of policy.

What Types of Businesses Need Coverage?

There are a wide range of industries that would benefit from pollution liability insurance. Any business that works with hazardous materials and chemicals or produces hazardous waste should procure protection.

The risk of exposure, leaks, spills and accidents can result in significant financial loss if you do not have the right type of coverage. Examples of industries who are at risk include:

  • Oil and gas companies
  • Construction companies
  • Restaurants
  • Agricultural businesses
  • Landscaping businesses
  • Transportation companies

What Is Covered?

The best types of policies are those that cover both gradual and rapid pollution incidents. They should also provide protection for accidents that occur both on and offsite.

You can expect that a pollution liability plan covers your company for third party injuries and illnesses, as well as property damage, due to hazardous waste exposure. Cleanup costs are also covered. Most plans provide coverage for legal defense in lawsuits, settlements and investigations.

If your company works with hazardous materials or produces hazardous waste, make sure you are protected should a pollution event occur. Pollution liability insurance offers coverage for third party injuries, illnesses and property damage that result from pollution exposure incidents.