The question of why do I need a policy for environmental insurance is now being asked by more than oil companies, coal mining companies either above or below ground and manufacturing plants. You are now seeing non-traditional operations hospitals, transportation firms, contractors large and small, and all forms of chemical plants asking about their various exposures and how best to cover their liability for these exposures. With the increased awareness that government agencies have to pollution and general population not wanting to be exposed to pollution this is a critical coverage to keep your firm as a good corporate citizen.
Society is painfully aware we have only one planet on which to live and we must provide strong stewardship to keep it in good order for future generations. The liabilities associated with environmental contamination can be significant and could force many firms out of business. The laze affair attitude of the past will not be tolerated any more so use proper risk management practices and purchase the necessary coverage to protect your company from loss.
Businesses need an environmental policy to cover their exposures to pollution in two ways:
Environmental coverage provides you with resources if you have a spill, leakage, or contamination that needs or requires cleanup. This might be necessary if a service station had a leak in one of their storage tanks. Your first- party environmental liability policy would provide the resources for the cleanup. If a trucking company carrying chemicals over filled the trailer on their premises the first party coverage would pay for the cleanup of your facility. The two examples cited in this paragraph are for “First-party coverage”
Environmental coverage protects your firm from negligent acts that a release of a pollutant from your company could have adversely affecting others away from your premises. If your negligence leads to pollution which affects others by contaminating the public water or air supply you need insurance coverage to protect your assets. Third-party coverage would protect you for damages your firm did to others. If you were a chemical plant and you had some chemicals escape from their intended place of storage making the surrounding town uninhabitable; your policy would pay for such damages from the resulting costs to move people to safety would pay damages from resulting lawsuits. If you purchase the coverage under third party pollution insurance could also protect you if your product causes pollution while it is being transported by a third-party such as a railroad. The coverage in this paragraph is known as third-party coverage responding to those you injury through your negligence.
Environmental Insurance coverage what will it do for my firm?
Usually general liability policies exclude pollution or other forms of environmental impairment or have some nominal limit which is totally insufficient- to do anything with. You should have an environmental policy tailored to meet your needs. The policy can be customized to include pollution liability, contractor’s liability, transportation insurance, and underground storage tank insurance.
Environmental impairment liability protection can be an extremely effective method in assuring lenders supporting the purchase or development of the property or to let purchasers of your company know that unforeseen or unknown conditions regarding pollution can and will be handled. When you purchase your pollution coverage through Helios Insurance Group: you can be defended against environmental claims including pollution conditions, cleanup costs, and claims of bodily injury or property damage.
When purchasing environmental insurance review your exposures carefully and ask all the questions you can until you feel comfortable with the coverage. Environmental legislation will continue to get tougher and those with environmental exposures will need to have a greater understanding of their liabilities to continue to thrive.