Common coverage types
Critical environmental impairment liability coverage
Ensure your business is properly covered for various environmental risks and liabilities. This insurance covers the costs related to pollution and contamination clean up, third-party property damage claims, and regulatory compliance and legal defense costs. It is especially relevant for industries that are exposed to environmental risks such as oil and gas, construction and transportation.
Contractors’ pollution liability
This provides coverage for ongoing operations and third-party claims arising from the release of pollutants during work being done by or on behalf of a contractor.
Premises-only pollution liability
This protects against gradual pollution being released at a fixed location, such as a gas station with underground fuel storage tanks.
Transportation pollution liability
This coverage is geared towards businesses who experience a pollution event from products or materials while being transported, shipped, or delivered by a customer or carrier on their behalf.
Products pollution liability
Covers pollution conditions arising from a product after it has been sold, distributed or put to its intended use. This can be particularly relevant for manufacturers, distributors and businesses whose products or components could cause contamination, environmental damage or bodily injury.
Project-specific pollution liability
Provides pollution coverage for a particular construction or development project, often for a multi-year term. Coverage can be arranged for the project owner, general contractor and participating subcontractors under a consistent set of terms.
NAVACORD’S ADVANTAGE
Why choose Navacord for your environmental impairment liability
A wide range of businesses and contractors are vulnerable to pollution risks, especially if they are handling pollutants as part of their daily operations. We have extensive experience providing these businesses with environmental impairment liability coverage tailored to their needs.
Customized coverage
We’ll get to know your business and the associated environmental risks of your operations to build coverage around your specific operations.
Expert advice
Backed by extensive industry knowledge, our experienced advisors bring practical advice to help you understand your coverage options.
Claims support
In the event of a claim, our in-house claims support team will be there to assist you through the process and advocate on your behalf.
Learn from our environmental impairment liability experts
“Environmental risk often sits in the gaps between a company’s operations, contracts and existing liability coverage. A thorough review helps identify where pollution exposures could arise, from the job site and fixed premises to products in use or materials in transit, so coverage can be structured around how the business actually operates.”
FAQs for environmental impairment liability
Environmental liability coverage helps cover costs associated with environmental risks. This could include cleanup costs for pollution and contamination, damages to nearby property, regulatory requirements, and legal defense costs for third-party claims.
Despite the best prevention efforts, environmental damage can occur at any time, and the reputational and financial impacts can be devastating. Businesses of all sizes should strongly consider protect themselves with environmental impairment liability.
The price of your environmental impairment liability will be determined by the size and type of business you operate. Sectors such as oil and gas, construction and transportation are most exposed to environmental risks. The cost will also depend on your previous insurance and claims history.
Some of the pollution events that can impact the business and the local community include:
- Spills and accidents during transport
- Leaks from machinery and storage tanks
- Fertilizers, herbicides and pesticides
- Project site run-off
- Asbestos, mold and dust
- Noise
- Underground resources and utilities causing contamination
Many business owners assume that their commercial general liability (CGL) policy already covers environmental damage. However, this is often not the case. Most CGL policies have pollution exclusions for third-party injuries and property damage. While you can purchase sudden and accidental pollution coverage as part of the CGL policy, it is much more limited than an environmental impairment liability policy. Not having environmental impairment liability coverage could leave your business vulnerable to risks and reputational harm.
