Packaged Insurance Coverage For Environmental Facilities

Landfills, transfer stations, recycling centers, water treatment plants, and other environmental facilities have unique risks and many of these types of organizations have an interesting set of pollution exposures to contend with. Insurance packages to cover potential pollution claims come in a variety of configurations, but all give the benefit of the costs savings associated with shared limits. Many environmental facility clients have been with the same carrier for several years, often as a result of not understanding all of their options, or they may be simply feeling apprehensive about changing their insurance. With new insurance carriers eager to write more of this type of business, the potential uncertainty surrounding existing carriers, and an overall softer market, it is a great time to fully explore the packaged environmental options open to your clients.

How does packaged environmental coverage work? 
o Coverage is based on the Commercial General Liability (CGL) coverage section. 
o Scheduled Site Specific Pollution Liability is provided via endorsement. 
o Packages can add extended coverages: transported cargo for Over the Road Pollution (TPL) 
exposures; Contractors Pollution Liability/Professional Liability (sharing the same limit). This applies if the insured is performing any contracting or consulting work off site for clients; and Non-Owned Disposal Sites. 
o Coverages are written with combinations of triggers, depending on the options selected. 
o Various retentions, depending on lines may be chosen. 
o All coverages share one aggregate. 
o Separate Business Auto policy for the insured’s fleet is also available for both hazardous and 
non-hazardous hauling exposures. 
o Separate Follow Form Excess policies may be available.

Site Specific Pollution 
Site Specific Pollution, also known as Premises Pollution, EIL, and PLL, is designed to cover claims arising from pollution releases at, on, or emanating from a specific scheduled location. A “location” can be as broad as an entire piece of property or as narrow as a specified storage tank. Environmental facilities include, but are not limited to, landfills, transfer stations, recyclers, and water/wastewater treatment facilities.

A pollutant is any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. A pollutant includes dust that can be kicked up by vehicles entering or leaving a landfill. A pollutant can also be wastewater run-off into a nearby stream. Pollutants are not always hazardous in nature but can cause pollution conditions that must be properly cleaned up. Without environmental coverage in place, the insured ends up paying out-of-pocket, since pollution claims are often excluded from the Commercial General Liability form. Purchasing a packaged policy including pollution protects the client and provides much more comprehensive coverage for his or her facility.

With multiple carriers willing to consider providing packaged coverage, your insureds now have more choices when it comes to obtaining quotes on their environmental facilities. Packages are becoming a more relevant and inclusive way of being protected in the event of a claim and many companies are finding that this is the most cost and time efficient way to get a complete insurance program.

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