Do You Have The Right Type of Pollution Liability Insurance?
Waste haulers operate in a high-risk environment where environmental exposures are frequent, complex, and costly. Your General Liability and Auto Liability policies exclude Pollution, so it is important to have a standalone Pollution Liability policy. Even if you do, not all carriers offer the same coverage, and your policy could have significant gaps.
Transportation Coverage
Your largest pollution exposure is the possibility of a spill or accident while transporting waste. Without dedicated transportation coverage, a pollution liability policy may not respond to incidents that occur on the road.
On- and Off-Site Clean-Up Costs
Environmental cleanup obligations can be triggered by regulatory action or voluntary efforts to protect community reputation. Comprehensive policies cover both on-site (company facilities) and off-site (customer or third-party locations) cleanup.
Third-Party Bodily Injury & Property Damage
Pollution incidents often harm more than the environment. Contaminated groundwater, toxic fumes, or hazardous spills can cause serious injury or property damage to third parties. It’s imperative that your pollution liability policy covers these exposures.
Non-Owned Disposal Sites
Waste management companies frequently rely on third-party landfills, transfer stations, and recycling facilities. Pollution-related liability does not always end upon delivery—haulers can be drawn into claims tied to contamination at non-owned disposal sites.
Defense Costs
Legal defense is often the most immediate financial burden in pollution claims. Strong policies include defense costs outside the liability limits, ensuring that coverage limits for cleanup and judgements are not depleted by legal expenses.
Excess Liability
Most excess liability policies do not include pollution liability as an underlying coverage – if you wish to (or are required to) carry higher limits for pollution, this typically needs to be done with a standalone excess pollution liability policy. Overlooking this can cause a misunderstanding of what your coverage limits are, or put you in a situation where you are unknowingly in Breach of Contract.
Even the most well-managed and risk-averse waste management companies are not immune to pollution exposures and claims. It is critical that your pollution coverage will respond properly when a claim arises.
The Professional Insurors waste haulers program includes all of the above coverages to ensure that you are properly protected against the risks that your business faces.
Contact us today to learn more.
