How is Pollution Insurance and Environmental Impact Liability Insurance Different?
Pollution policies and environmental impact liability policies are similar in that they both offer protections against chemical-related risks. The sorts of risks and amount of protection they offer, however, are different.
Pollution policies are generally designed for businesses like those listed above that might have a relatively minor (although still costly) pollution incident. For example, if a landscaper’s pesticides harm nearby fauna that’s not on a client’s site, pollution insurance might sufficiently cover the incident.
Environmental impact liability policies are normally purchased by businesses that require substantially more protection because they could have a large-scale pollution incident to deal with. Major companies that store and/or transport big quantities of chemicals typically get this type of policy.
Businesses that are unsure which of these two policies makes more sense for them should consult a knowledgeable insurance agent who can offer advice. An experienced agent can make a recommendation after considering a business’ particular situation and risk mitigation needs.
What Coverages Do Pollution Policies Include?
Because these are highly specialized policies, the coverages contained in them can be nuanced and vary from one policy to the next. Nonetheless, there are some incidents that many policies offer standard or optional coverage for. A particular policy might help cover:
- Cleanups that are legally required following an unusual incident
- Cleanups that are needed due to contamination caused by routine operations
- Cleanups of property that a previous owner contaminated
- Settlements and legal costs associated with certain pollution-related liability suits
How Much Do Pollution Policies Cost?
Insurance companies base premiums on many different factors. Some of the items that might impact how much a business pays for pollution insurance are:
- What industry a business operates in
- Where a business is located in relation to communities
- How a business disposes of its chemicals
- What chemicals a business uses
- Whether a business has a history of filing claims
An independent agent can request quotes from several insurers to give businesses an accurate idea of how much insurance will cost in their specific situation.