Environmental Insurance

What is Environmental Impairment Liability Insurance?

Environmental Impairment Liability Insurance, also known as Pollution Liability Insurance, provides coverage to organizations and companies related to pollution. If a company’s employees work with heavy toxins and waste and surrounding neighborhoods begin to suffer from toxin exposure and decide to sue said company, Environmental Impairment Liability Insurance covers that. Covering first- and third-party losses and claims due to pollutants’ release, migration, or creepage. Facility owners, manufacturers, and distributors can help mitigate risk in an ever-changing environmental landscape by adding Environmental Impairment Liability Insurance for their companies.   

First and Third-Party Claims

First-party losses cover damage to the organization’s property or land. If toxins or pollutants are spilled in a company-owned building or on company property and cause harm to the environment, Environmental Impairment Liability Insurance would cover the organization for any losses. 

Third-party losses cover a company or organization if a pollutant from their company causes harm or injury to other people. If the affected persons decide to sue the organization or company for negligence for allowing contaminants into the environment, this case falls under third-party losses.

Who needs Environmental Impairment Liability Insurance?

Environmental Impairment Liability Insurance is typically sold in a combined policy, the Pollution and Contractors Professional Policy. The Pollution and Contractor Professional Policy protects organization members, such as managers and executives, if damage is done to the organization’s property or a third party.

Although it is typically sold in a combination policy, if an organization would like to buy Environmental Impairment Liability Insurance on its own, that is also an option. If Environmental Impairment Liability Insurance is something you think your organization needs, call an agent at HIG now.