Unless you have placed pollution legal liability insurance for your clients, they are uninsured for environmental loss. This is bad for the environment and can compromise your client’s reputation and financial security.
As insurance professionals you have played an important role in reducing the risk of your clients and the public at large in doing so by reducing property and casualty risk. Environmental loss, however, has traditionally been our weak spot.
No Commercial General Liability Coverage. This is little to no insurance coverage for pollution liability on the ISO Commercial General Liability form. The absolute Pollution Exclusion (Section 2 Item F. Pollution) in the ISO form contains 1 ¼ pages of exclusionary language for any pollution loss. If your policy is endorsed with the Total Pollution Exclusion (CG 21 98 12 07), then even Products pollution is excluded.
Nominal Commercial Property Insurance. Pollutant Clean-up And Removal (Section A Coverages Part. 4. Additional Coverages of the ISO form CP 00 10 10 12) offers pollution clean-up with a $10,000 sublimit and responds only to pollution from a covered cause of loss and only if reported within 180 days of the loss date. It excludes any testing or monitoring that is not necessary for the removal.
We Can help
Identify your client’s pollution risks and communicate them; and Offer options to reduce and insure them.
(2) Washington Department of Ecology Analysis of Cleanup Obligations and Costs for Hazardous Waste Management Facilities in Washington State—Final Report January 29, 2003