What is Pollution Liability Insurance?
Pollution Liability Insurance is the coverage purchased by a Florida business to protect itself from claims arising out certain pollution events. This coverage is distinct from standard Commercial Liability Insurance, which in most cases excludes this type of exposure.

What does Pollution Liability Insurance cover?
These policies can provide coverage for pollution related events. These can include pollution of property or groundwater, as well as airborne emissions of contaminants which allegedly caused illness or financial loss to another party. This coverage also provides protection for clean-up and remediation costs at the premises owned and operated by the insured.

While these types of risk are typically associated with larger factories, in actuality many small businesses can be exposed to these issues. Any company that is utilizing chemicals such as a dry cleaning store potentially faces claims of this nature. Similarly, garages (and other automobile related businesses) and various industrial enterprises may benefit from Pollution Liability Insurance.

What are additional coverage options?
Pollution Liability Insurance can apply to many exposures and industries. As such it is imperative that the pollution coverage selected by a particular business contain coverages reflective of the associated risks. A listing of the more common coverage options are:

  • Transportation Coverage – Provides pollution coverage for exposures relating to transportation of cargo resulting in a pollution event.
  • Business Income Coverage – Extends coverage to include loss of income caused by a pollution claim.
  • Contractors Pollution Liability – Specific coverage for contractors who have a pollution exposure as part of their operations.

Is Pollution Liability Insurance mandatory?
Pollution Liability Insurance may be mandated in certain situations, such as where a permit or license is required. In certain instances, a lending institution may require this type of coverage as a condition for a loan approval.

Is Pollution Liability Insurance Costly?
Pollution Liability Insurance provides coverage to many different industries, and may cover many different types of exposures.  As such the policy cost will vary greatly depending on the industry and particular exposure.