Environmental liability insurance

Environmental hazards can arise from many sources and can affect businesses in almost any line of work. Under both federal and state laws, any business, organization, or individual could be held legally responsible for any pollution damage if they cause a pollution incident that damages properties, individuals, and the environment itself.

Depending on the pollution conditions, you might have to hire environmental consultants and pay for expensive remediation. Your staff, neighbors, or customers could suffer medical issues or file a lawsuit. This is where environmental liability insurance can help.

Environmental liability insurance, also known as pollution insurance, provides businesses with liability coverage for environmental risks from pollution exposures, as well as any pollution legal liability and cleanup costs they might face.

Environmental liability coverage can often be added as an endorsement to your general liability insurance for an added cost, as it is typically not included with this policy. In fact, many general liability policies have an “absolute pollution exclusion” that denies coverage for most pollution and environment-based events.

Environmental liability insurance covers damage resulting from an environmental mishap, including:

Environmental liability insurance benefits a wide range of industries that risk generating pollution that damages the environment around them.

Depending on your work, you may need this coverage to qualify for contracts. Lenders might also require this coverage before granting a loan, if there are any environmental concerns related to your business.

Several industries that often buy this coverage as part of their risk management plan for dealing with pollutants include:

Some business-related mishaps might cause environmental pollution, but are actually covered by policies other than environmental liability.

Exclusions from environmental coverage include:

To find the right insurance solutions for your business, fill out our free online application to get quotes from top-rated providers.

While some carriers offer environmental insurance as a standalone commercial insurance policy, most offer it as an add-on to general liability insurance or a commercial package policy (CPP).

A CPP combines general liability and commercial property insurance into one policy, with more coverage options and policy limits than what’s typically available in a business owner's policy.

It’s important to carefully review your insurance policies to see what exclusions they might have and to make sure you’re covered. For any questions about coverage, you can contact an Insureon agent.

While environmental liability coverage can be an important part of your risk management plan, you should consider these other small business insurance policies to fully protect your business from financial losses:

Workers’ compensation insurance: Required in most states for any business with one or more employees, workers' comp covers the medical expenses and lost wages relating to workplace injuries and illnesses.

Professional liability insurance: Also known as errors and omissions insurance, professional liability protects small businesses against the costs of client lawsuits over unsatisfactory work.

Commercial auto insurance: Required in most states for businesses that own vehicles, this policy covers your legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.

Inland marine insurance: This policy covers your business property, such as products, tools, and equipment, while it’s in transit over land or stored at an off-site location.

Commercial umbrella insurance: Once a policy’s limit is reached, commercial umbrella insurance provides additional coverage for liability claims made on general liability, commercial auto, or employer’s liability insurance.

Need a policy recommendation? Answer three questions and we can help you find the right coverage for your business.

Yes. Environmental liability insurance and pollution liability insurance both refer to the same type of insurance coverage.

Some industries use different terms for the same type of coverage. For example, contractors and other construction professionals often see this policy referred to as contractor’s pollution liability insurance.

In addition to industry differences, insurance companies may use different terms for similar insurance products. Check with an agent if you're unsure which type of coverage you need.

Yes. Many larger companies that own or rent their workspace can add premises pollution coverage as an endorsement to their environmental insurance policy.

Premises pollution liability (PPL) coverage, which is sometimes referred to as site pollution liability, provides first-party coverage for bodily injuries, property damage, or environmental damage that occurs at a location owned, operated, or leased by the policyholder.

It can cover spills and leaks that occur on the property itself, as well as underneath the property or in any nearby areas that are affected by pollutants from the property.

General liability insurance covers common business risks such as customer injuries, damage to a customer’s property, and advertising injuries. While it doesn’t typically include environmental insurance, you can often add it as an endorsement.

Environmental claims can be costly so it’s important to avoid any coverage gaps, especially if your business might be held responsible for pollution. Insureon can help ensure that your insurance policies provide all the coverage you need if your business deals with hazardous materials.

Complete Insureon’s easy online application today to get insurance quotes from top-rated U.S. carriers. You can also consult with an insurance agent on your business insurance needs, including any environmental concerns.

Once you find the right insurance products for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance the same day.