Are you wondering why you need to have separate pollution liability insurance when you already have other business insurance policies? If you check your policy, youand#39;ll see that pollution liability is not included in the coverage. Due to the rise in asbestos liability claims a few decades ago, pollution coverage has become an exclusion in most insurance policies.
Even if you only have a small business, you might fall victim to pollution claims and possible malpractice if you donand#39;t have the necessary insurance. Itand#39;s not only the local and state government who can file these claims against you but also other people and businesses near you. If you donand#39;t want your business to go bankrupt when faced with such claims, ensure that you have protection by getting pollution liability insurance.
Common Air Pollutants in the U.S.
Did you know that lessening the toxic air pollution emitted from industrial plants could potentially prevent thousands of heart and respiratory disease cases and save around 5,000 lives per year? By mid-century, global warming caused mainly by pollution can cause higher risks of water shortages in more than one-third of the total counties in the lower 48 states.
Today, more than 40% of Americans worry about outdoor and indoor air quality, radon, carbon emissions, particulate matter, tropospheric ozone, methane emissions, refrigerants, and volatile organic compounds. Out of the numerous air pollutants, the United States closely monitors the following six: lead, carbon monoxide, nitrogen dioxide, particulate matter, sulfur dioxide, and ground-level ozone.
Make sure your business complies with the law regarding clean air. You also need to have protection from pollution claims.
What Is Pollution Liability Insurance?
Separate from most business insurance policies, pollution coverage protects your company from liabilities that can arise from pollution-related claims such as damages caused by toxic waste materials. Such businesses include manufacturing companies that emit hazardous waste such as those in construction, asbestos abatement, waste depositories, oil, and agribusiness. They will benefit significantly from having pollution insurance coverage as the policy can cover liability claims for property damage, body injuries, illnesses, or even death.
Aside from the ones mentioned above, pollution insurance can also cover the clean-up expenses if the hazardous waste materials caused any contamination in groundwater, soil, or property. It can also cover pollution claims caused by air contaminants resulting from factory smoke and other airborne emissions. Some policies can even cover investigation expenses and legal fees involved in pollution incidents.
Who Needs Coverage?
Most people think that pollution insurance is only for large companies, power plants, and other huge factories. However, this is not the case because even small businesses can benefit from having this insurance coverage.
Obviously, industrial manufacturing companies that involve toxic waste exposure in their production need coverage. However, as surprising as it sounds, even a hair salon business needs coverage because they may use environmentally unsafe chemicals that pose a risk for pollution claims. Other small companies threatened by pollution-related lawsuits include junkyards, dry cleaning services, and even garages.
Even if your business does not involve hazardous waste materials, you will still benefit from the protection it offers. If the inspection performed on your business property missed even a small amount of toxic waste, you could still be responsible when the hazardous material gets discovered after a few months or years. With the ever-evolving environmental laws, youand#39;ll want to have sufficient liability protection to avoid the high cost of damages involved in pollution claims.
Is Pollution Insurance Expensive?
The premium for pollution insurance differs for each business. If your company does not involve any use of toxic chemicals, you wonand#39;t have to pay a high premium. On the other hand, for manufacturing and other businesses involving hazardous materials and waste, they need to pay higher premiums.
Business type, hazardous chemicals involved, toxic waste disposal method, and proximity to residential homes are factors that influence your pollution insurance premium.
Protect Your Business From Pollution Claims
To ensure that your business has adequate protection from expensive pollution claims, choose the pollution insurance that can provide it to you at a competitive and practical rate. If you need help, you can always ask for advice from liability experts like Mary Lopatto. Besides being an experienced mediator, sheand#39;s an expert in insurance and reinsurance claims, including pollution and asbestos.