Most commercial general liability policies contain exclusions when it comes to accidents involving pollution, so it’s important to evaluate if you have a gap in this area. The most common industries with potential concerns are manufacturing, transportation and construction, as stated by https://www.haughn.com. However, other smaller businesses can also be held liable for harmful exposures to the environment. It is essential to understand your risk and associated coverage before any situation arises.
Highlights of a Typical Policy
No one expects to be involved in a scenario where hazards escape into the environment, so understanding what commercial pollution liability means beforehand is beneficial. For contractors, it may even be required to have this coverage prior to starting a job. Hazardous materials can be spread in many ways and may affect people as well as property, so protection usually revolves around several factors:
- Contamination (air, land, water) of an external site from the insured property
- Contamination of insured site
- Bodily injury
- Property damage
- Clean-up costs
Some other factors to look for in a policy include coverage for releases from underground storage tanks, a clause for an extended reporting period, and handling of costs for a legal defense. Additional customization may be warranted based on the industry, so discussing all options with a professional will ensure you are shielded from all possible risks.