Several businesses generate pollution throughout their business. When these elements pollute a different property, that’s deemed damage. Standard general liability policies ruled out pollution from insurance policy coverage in the 1980’s. These liabilities have become protected under pollution insurance policies. Typical for a lot of companies that don’t seem to be associated with producing pollution, policies are prepared for these varied problems as apartment complexes, prisons and pig farms.
Just how do these pollution insurance policies work?
Pollution insurance policies are very different depending on who creates a policy as well as the details in the policy. Generally these policies follow a claims-made and reported structure. Which means that the claim was made to the insured party. Next the insured reports the claim to the insurance company. The fundamental basic principle is always that damage brought on by pollution to another individual’s property is protected by the insurance policy. Also, any clean-up expenses tend to be included.
Another essential stipulation amongst some policies is that damage or injury to individuals is included in addition to property damage. Some policies also provide that insurance company will take a look at the event and protect the insured individual in court if needed. A vital distinction to remember is whether or not a policy addresses existing pollution or only situations that arise soon after coverage.
Why are the Policies Needed?
In several circumstances there could be recent pollution at a property site. That existing pollution may under certain circumstances find way into adjacent properties, causing damage. The creation of new pollution during “normal” operation may also exist. Property damage and harm to individuals caused by the pollution created may be a liability that the party considers best covered by an insurance policy. The details of the situation will ultimately help to make the decision, and some situations may need pollution insurance.
What do the Policies Cover?
What the policy covers is determined by the individual policy. Each policy may be different, and you should consult the text of your individual policy. In general, many policies will cover clean-up costs of pollution that is contaminating another property. These policies usually cover damages caused by pollution that are awarded to individuals and properties. Many policies also cover the cost of investigating the claim that has been filed and defending against the claim if it reaches the courts. Other specifics may be negotiated, and not all these may be included in a single policy. Another important distinction is whether the policy covers existing pollution, and that too depends on the individual policy.
Who should I contact about a policy?
Who you contact will be determined by where you are and what you want to know. Depending on your location there are some government agencies that have information that may be helpful. There are also some areas where the government supplies pollution insurance policies. A number of larger insurance agencies also offer policies and contacting them directly should be an effective way to get details about the specifics of their policies. Some states have their own pollution insurance programs. Washington State has such a program through the PLIA (Pollution Liability Insurance Agency). Other states do as well. You can find information for your state by contacting your local environmental agency.
What should I keep in mind?
Find out about what insurance is needed in your situation. From there determine the amount of risk that you or your company can carry. These will be good starting points for determining what sort of policy you need. You should also have a quality assessment of the property you are considering insuring. There is always help. If you have any questions contacting a knowledgeable individual is a good idea. You can learn some of the options by visiting sites of pollution insurance providers, such as International Amalgamated.