Pollution Liability Cover

Though general liability policies protect an insured from a variety of claims including bodily injury, property damage, personal injury, and other exposures that may arise from business operations, most general Liability policies have a limited definition of coverage regarding pollution, or there is an exclusion on the policy when it comes to contaminants or pollutants arising from business operations.

Pollution liability also referred to as environmental insurance is offered on a claims-made or occurrence basis that provides third-party coverage for any bodily injury, property damage, cleanup, and related defense costs. The coverage only provides protection if the incident was a result of pollution conditions; such events are “sudden and accidental” or “gradual” in nature. The way a business manages environmental issues can affect its profitability and reputation.

What does it cover?

Pollution Legal Liability Insurance policy pays on behalf of the Insured, the sums the Insured is legally obligated to pay as a result of the emission, discharge, release, or escape of any contaminants, irritants, or pollutants into or on land, the atmosphere, or any water course or body of water, provided this results in “environmental damage.” It covers both sudden and gradual pollution conditions. This policy also provides on and off-site coverage for property damage, bodily injury, and cleanup costs triggered by pollution conditions and associated activities. It pays for the defense of any claim or suit subject to this insurance.

Pollution Legal Liability Insurance Claim Process

The claim settlement process of pollution legal liability insurance is a hassle-free process. As soon as it comes to the notice of the insured, it should be informed to the insurer. All the required documents should be provided. Once the claim is within the coverage, the insurance company will go ahead with the settlement.

The Major Exclusions.

Pollution legal liability insurance offers comprehensive coverage to manage the risks due to industrial activities harming the environment. However, the following exclusions are applicable.