Environmental Insurance

While some business owners might describe commercial insurance as a “necessary evil,” let’s face it: Every business needs to be informed about insurance and risk management decisions about the threats that could negatively impact their business. It’s critical for commercial insurance brokers to have a dialog with clients about the known and unknown risks that their company faces. That’s where agents and brokers like INSURICA can help you analyze your risk management strategy and, ultimately, work with your carriers to get you insured under the proper policies. Environmental insurance is one of those less obvious coverages you may not have considered. According to the National Association of Insurance Commissioners (NAIC), environmental insurance (also known as pollution insurance or pollution coverage) provides coverage for loss or damages resulting from unexpected releases of pollutants typically excluded in general liability and property insurance policies. The losses or damages covered by environmental insurance usually arise in the form of claims against insureds for bodily injury, property damage, cleanup costs, and business interruption. INSURICA is here to help you with five reasons why environmental insurance should be included in your company’s coverage plan:

1. Pollution exclusions are found everywhere: “A pollution policy is designed to fill the gaps triggered by the pollution exclusion found in most general liability policies. A general liability policy likely won’t provide coverage in the event of a pollution loss.”  – DeVon Hardin, eS, Environmental Strategist, INSURICA
2. Clean up can be expensive: If your company has a product that creates a pollution condition it can be expensive to clean up. For example, a transportation pollution liability policy can protect businesses if pollutants are released during vehicle collisions, mishandled unloading procedures, and more.
3. Environmental insurance offers additional benefits:

• Defense Costs
• Claims Personnel
• Payment of Penalties and Fines

4. Potential pollution exposures in many industries:An environmental exposure can happen in any industry. If your company creates a product, it can be at risk of pollution exposure. “It’s important to highlight that there is no industry standard for environmental coverages. It’s critical to check all insurance forms and endorsements to verify that they satisfy the specific coverage needs of the insured parties.” – DeVon Hardin, eS, Environmental Strategist, INSURICA
5. Help is available when exposures evolve: “Pollution coverage is more readily available and lower priced than many realize. To ensure adequate coverage, it is important to seek out a specialist in environmental risk management and insurance. Fortunately, the INSURICA Environmental Experts are here to help you.” -– DeVon Hardin, eS, Environmental Strategist, INSURICA

INSURICA’s multidisciplinary approach to environmental risk management brings together technical expertise in the sciences, engineering, environmental law, regulations, and insurance. By working directly with you and your employees, we analyze, identify, and quantify environmental issues. From there, our environmental team develops and employs proven programs. Contact INSURICA today for more risk management solutions.

Sources: National Association of Insurance Commissioners

This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2021 Zywave, Inc. All rights reserved.