Protect Your Business with Pollution Liability Insurance

December 19, 2022

There’s often a risk of pollution when you with hazardous materials, or if you are working in an environmentally sensitive environment.

When pollutants are released into the environment, cleanup must begin quickly.

Remediation can be very expensive, and pollution is not covered by your commercial general liability insurance.

Pollution liability insurance helps provide financial stability for your business and the people who rely on it by protecting you from unexpected clean-up expenses and lawsuits.

Get a pollution liability insurance quote

Talk to your Western Coast insurance expert about purchasing pollution liability insurance. We have the knowledge and expertise to guide you through this process.

Why do you need pollution liability insurance?

There is legislation in place to protect Canada's environment and you could be personally responsible for paying clean-up costs in the hundreds of thousands of dollars if you do not have pollution liability insurance. Liability claims can pile up quickly because people living or working near the site can claim damage or health risks. If pollution can escape into the environment gradually, accidentally, or suddenly during your business operations, you need pollution liability insurance.

For example, if a fuel tank developed a leak and a large volume of soil had to be remediated, this would not be covered by a commercial general liability insurance policy. Remediation would be extremely expensive, and the business might have to stop operations while the spill is cleaned up, resulting in loss of income on top of paying for cleanup.

Your Western Coast insurance expert will answer any questions you may have about pollution liability insurance and what policy is right for you.

Which businesses need pollution liability insurance?

industries that create hazardous waste during their operations need pollution liability insurance. These include agribusiness, construction, oil, asbestos abatement contractors, waste depositories, auto repair garages, dry cleaners, concrete product manufacturers, fabricated metal product manufacturers, storage tank installation, HVAC installation, and many others.

What does pollution liability insurance cover?

Pollution liability insurance covers property damage, bodily injury claims, and clean-up costs associated with contamination by toxic waste. Pollution can be released into the environment as a liquid, solid, thermal, or gaseous pollutant, contaminant, or irritant. It can occur outdoors or within structures.

Sudden environmental pollution

The escape of pollution into the environment can happen suddenly while a specific task is being completed. For example, the wrong cleaning materials could accidentally be mixed, creating a toxic gas.

Gradual environmental pollution

Gradual environmental pollution can happen over time and can be linked to a specific project. For example, if a contractor is removing an underground tank and leakage could become apparent days later.

Emergency response and cleanup costs

If pollution requires emergency response and cleanup, pollution liability insurance will cover the costs. One common example of this is an oil spill.

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