Does Your Small Business Need Pollution Insurance?

If your business operations include the emission of any hazardous waste materials, pollution insurance is something you’ll want to think about.

What is pollution insurance?

This is a form of liability insurance for businesses or contractors in industries like agribusiness, excavation, waste depositories, and asbestos abatement contractors.

If there are bodily injury or property damage claims from the emission of these materials, pollution insurance can help cover the damage. When a business is held legally responsible for clean-up fees required from these materials, pollution insurance can also go toward that.

For businesses within industries whose operations deal with hazardous waste materials, pollution insurance can be a critical addition to their policy.

Why is pollution insurance necessary?

Within the last 40 years, pollution damage was typically included under a commercial general liability (CGL) policy. Then, many insurance companies began to exclude pollution as a covered peril on these policies.

Why?

Environmental clean-up jobs from hazardous materials can quickly total millions of dollars. Often, this far exceeds the limits of a CGL policy so extra coverage becomes necessary.

Do I need pollution insurance?

If you’re a business owner or an independent contractor, it’s worth speaking to your insurance agency about pollution insurance. This will help you determine your need for this special coverage so you’re not caught without it.

Would you like to talk more about what kind of commercial insurance is right for your business? Call the team at Lupton and Luce Insurance today!