Pollution – Does Your Business Have Exposures That Need To Be Covered?
by Kyle Zehr, CIC, CWCA

There are countless pollutants your company may handle, such as fuel, which can damage the environment. Liability and property policies exclude or give minimal coverage to most pollutants or contaminants.

Typically, pollution problems occur when a pollutant is released and causes damage to the environment. For example:

• Companies who operate machinery may have a piece of equipment overturn in the course of operation, spilling fuel into a body of water causing pollution.
• A manufacturing business has a leak in a line, accidentally dumping production chemicals or chemical waste into the water supply.
• A building owner has several oil tanks that are damaged during a fire and leak oil into the ground water causing pollution.

Clean up costs from pollution can be incredibly expensive and financially damaging to a business. Most policies giving pollution coverage provide minimal limits ranging from $10,000 to $25,000 for clean up after a covered event occurs. The coverage afforded is almost always restrictive in scope.

If your business has any exposures or operations that could cause pollutants to be released into the environment, consider a pollution liability policy. Pollution polices are typically stand-alone and provide coverage for the damages and clean up costs by the release of pollutants into the environment.

Call FIFS at 1-800-332-4141 or 267-384-5300 for help determining if you need pollution coverage, and what policy is right for you.

FIFS Connection, Fall 2006, Vol.3, No. 4