As businesses grow and change with the times, so do our concerns for the environment. A pollution claim can arise without warning and may affect a wide array of businesses, bringing with it crippling costs and devastating effects.
A standard insurance policy may not cover pollution or environmental impacts. The good news is that pollution insurance can be obtained as an add-on policy to protect your business from unforeseen pollution risks.
Who Does It Cover?
Pollution policies traditionally covered just the owner, however there are more options available today. For instance, a lender who has loaned money backed by real estate could potentially face liability if an environmental condition is discovered, even after the property is foreclosed on. With a lender liability pollution policy, this lender would be protected.
Why Should I Purchase Pollution Insurance?
While pollution risks may seem to be a non-issue for your business, it’s important to remember that new forms of pollution are constantly being discovered. Also, there are many sides to a potential pollution exposure. For instance, if a third-party claims that injury resulted from your product as a result of unnoticed contaminants, the company is not only liable, but now has to face the costs of defending itself. Now, not only are you facing legal issues, you also face business interruption while the issue is handled, often including cleanup costs. Pollution insurance could cover all of these issues and save your business.
What Qualifies As Pollution?
Here is a sample of possible pollution sources:
- Lead paint
- Chinese drywall
- Toxic mold, fungus or bacterial contamination
- Silt runoff from construction sites into public water sources (both the contractor and property owner are liable)
- New green construction methods that may have unforeseen pollutants
- Contaminants or chemicals released into the air or public water supply
- Storage tanks (above or below ground)
- Improper waste disposal (medical included)
- Building fumes
- Vehicle exhaust
- Malfunctioning of ventilation equipment
- Malfunctioning or leaking of older buildings and pipes
Could your business be at risk? ERM Insurance Brokers in Irvine, California can help you decide what pollution coverage is right for you!
Call (949) 222-0444 to speak with an expert.