Why Consider Environmental Impairment Liability Insurance Now?
April 18, 2023
Have you noticed the headlines lately? A train derailment contaminates air, soil and groundwater. A metal factory explodes, possibly exposing nearby residents to hazardous materials, including lead. Hurricane-force winds topple power lines, rip open roofs and send asbestos and other pollutants flying in addition to creating an opportunity for water intrusion and mold. These recent events all occurred in just Northeast Ohio.
Across the entire country as similar events have unfolded, public awareness of environmental threats has significantly increased. Neighbors are questioning what has always been around them—and they have little tolerance for accidents and occurrences that jeopardize their health, real estate values and businesses. The affected parties’ demand for environmental justice might be directed towards 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 ways to eliminate or transfer 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.
Managing Director - Environmental Risk
Mary joined Hylant in 2005 and focuses on placement of environmental insurance programs supporting real estate transactions, ongoing operations, and M&A. In her current role as Managing Director, Environmental Risk & Placement, Mary’s duties involve the identification of environmental liability and risk management solutions, guiding client understanding of environmental insurance products, and coordination/negotiation of custom policy structures and terms.
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