Do I Need Pollution Insurance?

do i need pollution insurance

It is fairly clear that operations such as an oil well driller, dry cleaner, hair salon, hospital, waste water treatment plant, contractor, or service station need pollution insurance. But what about the rest of us?

Pollution exposures can arise from the release of any substance considered a “pollutant” – which is fairly broadly defined…

  • What chemicals or substances are used in your business?
  • What building materials were used in the construction of your premises? What would be released into the air, or require hazardous clean-up if there is damage to your premises?
  • Do you have above or below-ground tanks?
  • What is going down your drain every night?
  • How are you disposing of waste?
  • Is there the potential for Mold or Mildew to occur on your premises? Could your employees, customers or product(s) be harmed?

The substances that are considered pollutants today, were not necessarily identified as such in the past…  asbestos anyone?  The cost of clean-up has escalated exponentially.  It varies based on jurisdiction;  Local?  State?  Federal?

Pollution coverage goes beyond lawsuits from third parties, and extends to clean-up on your own premises.

The short answer to “do I need Pollution Insurance?” may be “how big is my exposure to a loss involving a pollutant?”  Dig deeper.  Explore the issues with your insurance broker.  The total cost of risk is never just an insurance premium.  It is the cost of decisions which include choosing to insure – or not insure a risk based on a thoughtful process.

To learn more about Pollution Insurance, contact any of us at Propel.

Propel Insurance