Pollution and Environmental Liability Insurance: What You Need to Know

Standard Commercial General Liability (CGL) policies exclude pollution and environmental hazards, leaving businesses exposed to significant risk. That’s why Environmental Liability Insurance is essential. These policies can be custom-tailored to address a wide range of exposures, including pollution liability, environmental professional liability, contractors’ liability, transporter coverage, and storage tank pollution liability.

Environmental Impairment Liability Insurance is also a critical tool for transactions—helping assure lenders in property acquisitions or developments and providing potential buyers with confidence that unknown environmental conditions are properly insured.

Importantly, pollution and environmental liability coverage isn’t just for oil, gas, or energy companies. Every year, environmental awareness grows, regulatory restrictions increase, and corporate responsibilities expand. Pollution Insurance protects businesses in two vital ways:

• First-Party Coverage – Provides funding for cleanup and remediation costs if your operations cause a spill or contamination on your property. For example, if chemicals used in your business leak into the soil, first-party coverage funds the cleanup effort.

• Third-Party Coverage – Protects against claims that pollutants from your business have caused harm to others. This could include contamination of public water or air supplies. For instance, if an ammonia leak from a refrigeration unit forces surrounding residents to evacuate, third-party coverage would respond to costs, damages, and lawsuits. Coverage can also extend to pollution incidents caused during transportation of your products by third parties such as railroads or trucking companies.

Who Should Consider Environmental Insurance?
A wide variety of industries face environmental risks, many of which may not be obvious. Businesses and organizations that should strongly consider environmental liability insurance include:

• Manufacturing and processing companies

• Healthcare entities (especially hospitals)

• Municipalities

• Agribusinesses

• Real estate developers (mold exposures)

• Property management groups (mold exposures)

• General contractors and artisan contractors

• Remediation contractors

• Disposal and recycling facilities

• Businesses with aboveground or underground storage tanks

As environmental regulations tighten and risks evolve, Gatta Insurance helps businesses stay protected with comprehensive, tailored environmental coverage—safeguarding operations, supporting compliance, and ensuring peace of mind.