One thing that most anyone who has read how various insurance policies would respond to the Coronavirus pandemic can agree on is this… “pollution” is a tricky word to define. It is also the largest exclusion in most General Liability policies (with some small exceptions). “Pollutants” can be defined as… “any solid, liquid, gaseous, or thermal irritant or containment, including smoke, vapor, soot, fumes, acid, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.”
While most insurance policies will exclude losses related to “pollutants”, fear not because there is a solution… and that solution is an Environmental Impairment Liability policy! This policy will cover things that most other insurance policies exclude as it relates to environmental and “pollutant” issues. But how do you know if you need such a policy? The easiest answer is this – if you are concerned about your business or operations leading to a loss that could be defined as being caused by a “pollutant”, then you need to look into this coverage. If you are not concerned about this but are still curious if you need this policy, consider the following:
- Are you planning on going carbon-neutral?
- Do you have a neighbor that could be contaminating your property?
- Do you have underground or above ground storage tanks?
If the answer to any of these questions is yes, then you need to consult with your insurance professional today. If you are an association, own property, or are in the contracting, service station, gas distributor, retail, wholesale, restaurant, etc. business then you should be thinking about this coverage also. Contact one of our insurance consultants today to begin the conversation around this important insurance coverage!
Written by Robbie Korth
If you have any questions, please feel free to contact Robbie Korth at rkorth@parkassociates.com.