10 Situations When You Need Pollution Liability Insurance
Oil and chemical companies understand the need for pollution liability insurance coverage. But they aren’t the only ones with potential exposure to pollution-related incidents.
In fact, many other types of companies have uninsured pollution exposures. And it’s possible there are literally thousands of companies exposed and unaware of the financial risk they currently face.
We can’t know for sure if your company is at risk without taking a peek at your existing liability insurance policy. But we’ve created 10 situations below to help you self-identify with your own potential pollution-related exposures.
- Your air compressor explodes hydraulics contaminating your property and/or bodily injury to a third party.
- Your ammonia refrigeration system leaks causing a disruption of operations or a third party facility to shut down.
- A facility adjacent to your plant has a chemical leak causing your company to shut down for several weeks until the EPA deems it safe to return to work
- Your product is ingested causing a bodily injury or hypersensitivity allegation.
- Your product “contaminates” another’s product or another’s manufacturing equipment.
- Your process wastewater runs into a nearby stream.
- A fire at at your facility creates smoke and a terrible odor causing the surrounding residential neighborhood to allege impairment filing multiple lawsuits against you.
- Dust from your cyclonic collecting tower explodes causing alleged bodily injury to a third party as well as extensive damage to your property. The EPA also mandates you cease operations during the clean-up process which severely disrupts your revenue stream.
- Your residential facility or nursing home fields complaints of mold or Legionella which leads to law suits alleging bodily injury, the shutdown shutdown of the facility, and loss profits or rents.
- Paint, or some other type of liquid substance, runs off your facility into a nearby drain or stream.
Anything come to mind? If the answer is “yes”, or “maybe”, it’s possible your existing general liability insurance won’t completely cover the exposure. And if you’re not fully covered, then you might be in for nasty surprise.
Contact us below and we’ll review your current situation for pollution-related exposures.
Brian Heun is the Sales and Relationship Manager and a Partner at KMRD Partners Risk & Insurance Solutions, a leading risk management and human capital solutions firm based in Warrington, Pa.
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See also: How Liability Insurance Protects Your Business