Downtown Portland, Oreogn

Pollution Liability Insurance

Pollution Liability Insurance, also known as Environmental Liability Insurance, is a very specialized area of insurance that address specific environmental liabilities your business may be vulnerable to.

Do you need Pollution Liability Insurance?

Pollution Liability Insurance protects and covers your company in the event of bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants.

These accidents can happen suddenly or over time, but when they do, their clean-up and legal ramifications are costly.

Some examples of Oregon businesses that may need to have Pollution Liability Insurance include:

  • Energy (Oil, Gas, Nuclear)
  • Commercial Property Owners
  • Manufacturing and Processing
  • Healthcare (hospitals)
  • Environmental or Restoration Contractors
  • Environmental Consultants
  • Disposal and Recycling Facilities
  • Municipalities
  • Transportation Industry
  • Amusement Parks
  • Any business with above-ground or underground storage tanks

Pollution Liability Insurance is divided into two main categories:

This coverage provides businesses with funding should they need to clean up after a spill or contamination. This kind of protection is necessary if your business uses any chemicals or hazardous waste that could potentially be leaked into the ground on your property. Essentially, first-party coverage funds required clean-up efforts. One of the main reasons that first party pollution and environmental liability coverage is so important is that when companies that cause environmental disasters go bankrupt, the victims can still be compensated.
This coverage protects businesses from any allegations that a pollutant from your facility has been released and/or adversely affected others. If, for example, the pollution from your company were to contaminate the public water supply, your third party coverage would protect you from any resulting lawsuits and other costs such as evacuation and damages. Third-party pollution insurance coverage could also protect you if your product causes pollution while it’s being transported by a third party, such as a cargo ship.

Pollution Liability Insurance Costs

Pollution Liability Insurance costs are based on a number of factors which include:

  • Business experience
  • Type of business
  • What are the formal controls or loss prevention procedures?
  • Loss history

Reach out to me when you’re considering Pollution Liability Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Pollution Liability Insurance quotes from multiple insurance carriers so you can get the best possible rate.

As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.