Environmental Insurance

Genuine environmental insurance needs to have an insuring agreement that provides specific coverage for losses arising from the release or escape of pollutants. At a minimum, the insurance coverage will apply to losses arising from:

• Bodily injury (mirrors and sometimes enhances the definition used in the general liability (GL) policy)
• Property damage (mirrors and sometimes enhances the definition used in the GL policy)
• Cleanup expenses (usually as required by environmental laws with available enhancements by class of business)
• Defenses costs (traditionally included within the limit of liability)

Common optional coverages include:

• Non-owned waste disposal sites
• Transportation of pollutants as cargo
• Business interruption
• Loss of rents
• Extra expense
• Reputational damage
• Midnight dumping on insured locations
• Coverage for fungi/bacteria as defined pollutants
• Amended definitions of cleanup costs for contaminants that are not regulated as hazardous materials (fungi/bacteria)
• Reputational damages