Frequent question: What does an environmental insurance policy cover?

Issue: Environmental insurance (also known as pollution insurance or pollution coverage) provides coverage for loss or damages resulting from unexpected releases of pollutants typically excluded in general liability and property insurance policies.

What do environmental policies cover?

Also known as Environmental Impairment Liability (EIL), this type of insurance covers claims for personal injury, damage to property, clean-up expenses, legal expenses or fines that have been incurred as a result of pollution.

What is an environmental insurance?

What Is Environmental Liability Insurance? Environmental Liability insurance (ELI) provides financial protection for property and business owners in the event of restoration after damage caused by an environmental impact such as pollution or biodiversity.

Why do I need environmental insurance?

The purpose of an environmental insurance policy is to fill the insurance coverage gaps created by pollution exclusions in liability and property insurance policies. Because pollution exclusions vary a great deal in property and liability insurance policies, environmental insurance policies vary a great deal as well.

What is environmental impairment liability insurance?

Definition. Environmental Impairment Liability (EIL) Insurance — a specialized insurance policy that covers liability and sometimes cleanup costs associated with pollution. See also Casualty insurance; Insurance; Liability insurance; Pollution exclusion.

What does environmental insurance cost?

Although normally premiums run between $3,500 and $7,500 per year, some run less than that. And for a site with a known problem, or a buyer or seller that needs pollution legal liability and cost cap insurance – the premiums can start around $50,000, Persha said.

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What type of pollution is covered under a homeowners policy?

What is pollution in a property policy? ISO defines “pollutants” in its property policy forms as: any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

What do environmental underwriters do?

Their job is to take all of the applications, loss runs, certificates, etc. that brokers or agents are able to provide and then determine if the risks are a fit for their company and if so, produce a quote for coverage on said exposures.

Does umbrella insurance cover pollution liability?

Pollution liability.

Some umbrella policies cover accidental and sudden pollution liability that is typically excluded from general liability policies (but not seepage gradual pollution).

Does a commercial auto policy cover pollution?

Pollution Cleanup – if you or an employee is at fault for an accident in a covered vehicle that causes bodily injury or property damage, your Commercial Auto Liability Insurance will cover the costs of pollution cleanup due to the accident.