Environmental Insurance Services – Coverage Options and Solutions

Pollution Legal Liability

The Pollution Legal Liability, Environmental Site Liability or Environmental Impairment Liability policy provides coverage for pollution conditions that arise from past or present operations at a fixed facility or location.

Buyers, sellers and their lending institutions may be added to an existing or new policy. Coverage can be structured to include third-party claims and first-party discovery of contamination.

Typical coverages afforded under the policy include:

• Cleanup of new and/or pre-existing pollution conditions both on- and off-site
• Third-party bodily injury
• Third-party property damage, including natural resource damages
• Defense expenses
• Business interruption (optional)
• Non-owned disposal sites (optional)
• Transportation (optional)
• Mold (optional)

Contractors Pollution Liability

A Contractor's Pollution Liability policy is designed to offer protection for contractors and subcontractors from pollution claims that arise from the performance of covered operations. Coverage can be on a program basis or project-specific.

Typical coverages afforded under the policy include:

• First and third-party cleanup costs
• Third-party bodily injury
• Third-party property damage, including natural resource damages
• Defense expenses
• Non-owned disposal sites
• Transportation
• Mold

Cleanup Cost Cap

Cleanup Cost Cap policies "cap”, or put a limit on, the costs of a remediation project up to the limits of the policy. A Cleanup Cost Cap policy is designed to provide the policyholder, including the lender, with a tangible cost for the cleanup of an impaired property and allow parties to quantify the amount of potential financial risk involved. Brownfield redevelopers also commonly use this product.

Standard coverages applied to owners, lenders and sellers of the property include:

• Cost overrun protection over the anticipated cost of remediation, up to the limits of the policy
• Costs associated with the Remedial Action Plan (i.e. electricity to run remedial equipment) are covered under the policy
• Unknown contamination, known contamination that is worse than anticipated, and unanticipated costs are covered (over the expected costs)