Almost all premises have a pollution exposure, from an insured’s day-to-day operations, a neighbor’s negligence of its facility, or even natural disasters triggering an event. These pollution exposures are usually excluded from General Liability or Property coverage forms, so it is important for businesses to have appropriate coverage in place that protects them from potential claims.

Claim scenarios for site risks.

Site Pollution Liability
Site Pollution Liability insurance, also known as Premises Pollution, Environmental Impairment Liability (EIL insurance), and Pollution Legal Liability (PLL), is designed to cover claims arising from pollution releases at, on, or emanating from a specific scheduled location. Examples may include a contractor’s equipment yard, a manufacturing plant, a shopping center, or even a self storage facility.
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  • Coverage can be modified to cover only new conditions occurring from policy inception onward, only unknown pre-existing conditions, or both.
  • Coverage may be provided for mold, fungus and legionella.
  • Coverage may include waste disposal activities, as well as emergency response costs.
  • Coverage can be constructed to apply only to on-site bodily injury, property damage, and clean up; only to off-site, or to both.
  • Coverage is very flexible.
  • Coverage is almost always Claims Made.

There are many issues that must be addressed when discussing Site Pollution coverage with your insureds:

  • What has the property previously been used for?
  • What will the property be used for in the future?
  • What policy limit of insurance will cover your contractual needs or make you feel safe in the event of a loss?
  •  Are you concerned with first party triggers or will third party be enough?
  • Will you want pre-existing coverage, new conditions only, or both?

Here are just a few examples of sites that should have Site Pollution Liability in place:

Warehouse Facilities
Warehouse facilities have the potential for very unique pollution exposures due to the size of the facilities and the amount of goods typically stored on-site at any given time. From an insured’s daily operations, to the possibility of a natural disaster triggering a pollution event, it is crucial that warehouse owners and operators have adequate coverage.

Wastewater Treatment Plants
Wastewater treatment plants can be found all over the United States, and are designed to clean used water and sewage so that it can be returned safely to our environment. This wastewater comes from homes, schools, businesses, groundwater runoff, and storm water infiltration, and must be sent through several processes in order to safely remove solid particles, reduce pollutants, and restore oxygen. The chemicals and machinery used in processing wastewater and the resulting solids/sludges can cause bodily injury to workers, site explosions, pollutant discharge into the soil, water, and/or air, and a whole host of other problems that can result in an insurance claim.

Recycling Centers
As more materials are shipped to local recycling centers, these facilities are increasing their environmental exposure, sometimes without knowing it.  Materials may arrive that cannot be recycled, thus proper disposal is required. The influx of goods means longer periods of storage, and the recycling machines are running for longer periods of time, consuming more fuel. In addition, more traffic on these sites may increase the potential for the accumulation of petroleum hydrocarbons in the soil.

Farms and Agribusiness Facilities
Farms and agri-service facilities face many potential pollution exposures, regardless if they are located in rural or urban locations. Farming facilities of all shapes and sizes should be aware of the potential site risks that may come with the day to day activities from running this type of business. Environmental issues that can arise from these sites include, but are not limited to: pesticide/herbicide overspray, misapplication of biosolids and manure, over the road spills of chemicals and fertilizers, storage of chemicals/fertilizers/equipment, and leaking storage tanks.