Environmental liability insurance is a highly specialized policy that protects businesses from the enormous costs associated with pollution and environmental contamination. It covers expenses for cleanup, legal defense against third-party claims of bodily injury or property damage, and regulatory fines that are explicitly excluded from general liability policies, making it vital for high-risk industries.
- What It Is: A policy that covers costs related to pollution and environmental damage.
- What It Covers:
- Cleanup Costs: Remediation of pollutants on the insured’s property or at a third-party site.
- Third-Party Claims: Bodily injury or property damage caused by pollution.
- Legal Defense & Fines: Covers regulatory fines and legal expenses.
- Who It’s For: Manufacturers, contractors, fuel companies, and other businesses with a high risk of causing environmental contamination.
- Key Considerations: Pollution-related claims are almost always excluded from General Liability policies.