Environmental Site Pollution Liability Insurance
All Canadian businesses have a moral and legal obligation and responsibility to protect our environment locally and globally. Our continuously changing legislation shows that business owners must take their responsibility seriously, as an environmental disaster could also lead to a financial one for most companies. Thankfully, ALIGNED Insurance works with many insurers who offer environmental site pollution insurance policies designed to respond to pollution and environmental damage arising from the insured’s properties and associated business activities.
Which Industries Should Consider Environmental Site Pollution Insurance
- Manufacturing
- Industrial
- Transportation
- Real Estate
- Marine
- Other
Environmental Site Pollution Insurance Coverage Features
- Typically minimum $5,000 deductible
- Claims made trigger: The policy will cover claims made and reported during the policy period, provided the incident occurred on or after the retroactive date specified in the policy.
- Maximum periods up to 5 years plus extended reporting
- Flexibility in site coverage choice
- Designed to respond to broad and changing environmental law
- Pollution can be of a sudden or gradual nature
- Third-party claims for:
- Bodily injury
- Property damage
- Clean-up costs
- Clean-up and restoration costs – (where the insured’s property is damaged responding to an incident)
- Emergency costs – (where the insured must respond to a pollution incident)
- Third-party claims resulting from transportation activities, including loading/unloading and cargo at rest for up to 48 hours
- Claims expenses are covered under all sections, including investigation and legal defence
- Liability for damage to natural resources /biodiversity is provided as a standard
Typical Risks That Are Eligible For Environmental Site Pollution Insurance
- Manufacturing
- Logistics
- Port terminals
- Waste
- Metal Industries
- Traditional Power Generation
- Renewable Energy
- Oil & Gas
- Real Estate / Property Investors
- Hotels & Leisure
- Marinas
- Vehicle Repair /Garage / Depots
- Airports
- Gas stations and car washes
- HVAC / Remediation /Asbestos / Mould
- Pipelines
- Oil & Gas Wells and Oil/Fuel Delivery
- Mining
- Landfills
Types of Environmental Insurance Coverage
Pollution Liability Insurance
This coverage addresses pollution liability from both sudden and gradual incidents. It includes protection against third-party claims for bodily injury, property damage, and clean-up costs.
Fixed Site Pollution Legal Liability
Covers pollution conditions at a specific scheduled location, including legal liabilities that may arise. This coverage is essential for businesses with fixed sites that may pose environmental risks.
Premises Pollution Liability
Designed to cover claims arising from pollution conditions occurring at or emanating from a specific property. This includes coverage for bodily injury, property damage, and clean-up costs.
Environmental Impairment Liability Insurance
This provides broad coverage for environmental liabilities resulting from sudden and gradual pollution events. It is suitable for businesses looking to protect against various environmental risks.
Optional Coverage Enhancements
- Coverage for pre-existing conditions to address pollution releases that may have occurred before the policy’s inception
- Emergency response costs for immediate actions needed in response to a pollution event
- Transportation pollution liability for incidents during the transport of hazardous materials
- Additional protection against natural resource damage from pollution conditions
Frequently Asked Questions
What is the difference between pollution liability insurance and premises pollution liability?
Pollution liability insurance covers a broad range of incidents, including both sudden and gradual pollution events. It is designed to address third-party claims for bodily injury, property damage, and clean-up costs. Premises pollution liability specifically covers pollution conditions at or emanating from a particular property, providing similar protections but focusing on fixed locations.
How does environmental site pollution insurance handle natural disasters triggering pollution events?
Environmental site pollution insurance can include coverage for pollution events triggered by natural disasters, ensuring businesses are protected against environmental disruptions. This coverage helps manage the risk of environmental damage from natural calamities and includes coverage for emergency response costs.
Are aboveground storage tanks and storage facilities covered under environmental site pollution insurance?
Yes, environmental site pollution insurance typically includes coverage for aboveground storage tanks and storage facilities. This ensures businesses are protected against pollution exposure and potential claims arising from these specific areas of operation.
What are unknown pre-existing conditions, and how are they covered?
Unknown pre-existing conditions refer to pollution releases that occurred before the policy’s inception but were unknown at the time the policy was placed. In some cases, environmental site pollution insurance can provide coverage for these conditions, offering protection against historical incidents that were not previously identified or known prior to purchasing pollution insurance.
What should businesses consider when selecting environmental site pollution insurance?
Businesses should evaluate their specific environmental risks, the nature of their operations, and potential sources of pollution exposure. They should choose a policy that offers comprehensive coverage tailored to their needs, including optional enhancements such as emergency response costs, transportation pollution liability coverage, and protection against natural resource damage.
ALIGNED Across Canada
100% Canadian-owned, ALIGNED is a premiere insurance brokerage that serves thousands of clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.
