Pollution and environmental exposures exist for many businesses, and they are not typically covered under standard insurance policies. A steadily increasing focus on the environment paired with an expanding list of known pollution sources have led to many recent costly lawsuits that companies never saw coming. Due to the unknown nature of many environmental conditions, a pollution claim can arise at any time, for nearly any type of company, and the cost could prove devastating.
Many claims that insurance companies classify as pollution-related are ones that you may think would be covered under your commercial general liability (CGL) policy. Due to the sweeping pollution exclusion on these standard policies, you may find yourself surprised when a claim is classified as pollution and not covered.
The following are just a sampling of possible pollution exposures that may affect your company:
- Silt runoff from construction sites into public water sources (liability for both contractor and property owner)
- Improper waste disposal (including medical waste)
- Building or car exhaust/fumes
- Malfunctioning of HVAC or ventilation equipment
Pollution is an unpredictable, costly exposure that your business should consider as part of its risk management program. While some pollution-related incidents can be prevented, there is always the possibility for an unexpected spill, contamination or environmental condition to occur or surface.
Fortunately, Evergreen has access to insurance companies who can write pollution insurance on a separate policy to protect you from the risk of environmental conditions and cover the many potential costs of those exposures. There are several types of pollution coverages available, and Evergreen can help customize coverage to fit your unique risks and exposures.