When discussing liability insurance options with clients, one particular liability coverage that many clients do not quite understand is Pollution Liability Insurance Coverage. When conducting business today, especially if you are a Paving Contractor, Roofing Contractor in Phoenix, HVAC Contractor, Tank Installation Contractor, Excavation Contractor, Grading Contractor, Drilling Contractor, or Renovation Contractor, you may face many pollution risks from operations at your job sites. Contractors’ potential risks include contaminated soil disposal and the accidental release of fuel oil, chemicals, and toxic gases from broken pipelines, utilities, and stationary and mobile fuel tanks. Having Contractors Pollution Liability insurance could provide protection from sudden pollution or gradual pollution risks associated with construction projects. One of the main reasons that Pollution Liability Coverage even exists today is because most standard Phoenix general liability policies issued today usually exclude the damages caused by pollution.
To be clear, in the construction industry, there’s no shortage of pollution exposures that could hurt your company financially. If your contracting company is not properly insured for these types of professional liability exposures, you can suffer severe hardship in the event a claim is made or a suit is filed against you. In addition to contractors who should carry Pollution Liability Insurance, other businesses that should also consider adding this type of coverage are: Manufacturing and Processing Companies, Healthcare Facilities, any company in Agribusiness, Underground Contractors, Waste Disposal and Recycling Businesses, and any type of business that has above ground or underground storage tanks.
Traditional commercial general liability insurance policies do not cover pollution and environmental hazards. However, an environmental insurance policy can be tailored to your specific business and its risks. Environmental insurance policies can be customized to cover pollution liability, environmental professional liability, Scottsdale contractors’ liability, transporter insurance, and storage tank pollution liability. Environmental impairment liability insurance can be a necessity to assure lenders supporting the purchase or development of property, or to assure potential purchasers of your company that unknown conditions are covered.
With the right pollution coverage, you are protected against environmental claims, including pollution abatement, cleanup costs, and claims of bodily injury or property damage. As evidenced by recent claims, pollution and environmental liability insurance isn’t just for oil companies and nuclear plants. As we discover more about the environment and the effects of commercial businesses, there is a strong likelihood that there will be an increase in restrictions and your company’s responsibilities will continue to grow.
PJO Insurance Brokerage
4103 East Prickly Pear Trail
Phoenix, Arizona 85050
Having Pollution Liability Insurance Coverage can protect your company in two important ways:
1. First-party Liability Coverage can provide your company with funding if your company has a contamination or a spill that will require extensive cleanup. This action could be necessary if any chemical used in your company leaks into the ground on your property. Your first-party environmental liability policy would pay for the cleanup effort on your property.
2. Third-party Liability Coverage protects your business from allegations that a release of a pollutant from your company’s facility unfavorably affects others. If this type of pollution affects others by contaminating the land, water supply, or air supply of the public, third-party liability coverage would protect your company. To give you an example, say a refrigeration unit at a local processing plant develops an ammonia leak and then contaminates the air, and, as a result of these actions, the residents from the surrounding community are forced to evacuate, your AZ Pollution Liability policy would pay for resulting costs and any possible damages arising from lawsuits. Third-party pollution insurance coverage could also protect you if your company’s product causes pollution from an accident or spill while it’s being transported by a third party, such as by a railroad or by a truck.
There is a large range of businesses that can benefit from an Arizona Pollution and Environmental Liability Insurance Policy, including such entities as agribusinesses, developers, commercial property owners, and even amusement parks. Here is a small list of other industries that should strongly consider an Arizona Pollution Insurance Policy:
Manufacturing and processing companies
Healthcare facilities, especially hospitals
Golf Courses with storage tanks
Waste Disposal and Recycling Facilities
Businesses with aboveground or underground storage tanks
If your company would like to learn more about Arizona Pollution Liability Insurance, and how having this type of insurance coverage could be helpful to your business, PJO Insurance Brokerage would welcome the opportunity to discuss this coverage with you and help you develop a plan that fits your particular needs.