Why Consider Environmental Impairment Liability Insurance Now?

Environmental risks rarely arrive with much warning. An industrial accident, a catastrophic weather event, or a failure in aging infrastructure can suddenly release contaminants into the air, soil, or water, putting nearby communities, properties, and businesses at risk. When these situations occur, concerns about exposure, long-term health effects, and environmental cleanup quickly surface.

As awareness of environmental threats has grown, so have expectations for accountability. Communities are paying closer attention to what surrounds them and how it’s managed, with little tolerance for incidents that endanger public health, property values, or economic stability. In the aftermath, questions about responsibility and environmental justice often follow, and those concerns may be directed toward your operation.

What Is Environmental Impairment Liability Insurance?

If they haven’t done so already, risk management teams should identify their company’s operational vulnerabilities and discuss how to fill gaps created by standard pollution exclusions in their commercial general liability and property insurance policies. M&A deal teams should also explore environmental vulnerabilities and risk management practices of target companies and planned acquisitions to ensure their investments are appropriately insured.

Environmental impairment liability insurance, sometimes called pollution legal liability insurance or pollution insurance, is useful for closing that gap. Stand-alone environmental impairment liability insurance can provide coverage for the following:

• First-party remediation, third-party bodily injury and third-party property damage arising from pollution events, including on-site and off-site migration of pollutants
• Business interruption costs arising from pollution events
• Remediation of disturbed asbestos/lead paint or mold arising from weather events
• Transportation and disposal costs associated with remediation of covered pollution events
• Crisis communication/management expense for responding to pollution events
• Legal defense costs related to pollution events

Contact Hylant’s Environmental Insurance Pros

Pollution-related liability costs can add up quickly, seriously damaging your bottom line. Hylant’s environmental insurance specialists can guide you in identifying environmental exposures and in eliminating or transferring these risks.

Related Reading: Using Site Pollution Liability Insurance to Close Real Estate Deals

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.