KMRD Offers Advice Providing Commercial Examples of When to Consider Pollution Liability Insurance

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If an organization doesn’t purchase pollution liability insurance with business interruption it is exposed to a financially damaging surprise.

Oil and chemical companies understand the need for pollution liability insurance coverage. But they aren’t the only ones with potential exposure to pollution-related incidents.

In fact, many other types of companies have uninsured pollution exposures. And it’s possible there are literally thousands of companies exposed and unaware of the financial risk they currently face.

KMRD can’t know for sure if a company is at risk without taking performing in-depth assessment. However we’ve identified 10 situations below to help clients self-identify their own potential pollution-related exposures.

  • An air compressor explodes hydraulics contaminating your property and/or bodily injury to a third party.
  • An ammonia refrigeration system leaks causing a disruption of operations or a third party facility to shut down.
  • A facility adjacent to your plant has a chemical leak causing your company to shut down for several weeks until the EPA deems it safe to return to work
  • A product is ingested causing a bodily injury or hypersensitivity allegation.
  • A product “contaminates” another’s product or another’s manufacturing equipment.
  • Process wastewater runs into a nearby stream.
  • A fire creates smoke and a terrible odor causing the surrounding residential neighborhood to allege impairment filing multiple lawsuits against you.
  • Dust from a cyclonic collecting tower explodes causing alleged bodily injury to a third party as well as extensive damage to your property. The EPA also mandates ceasing of operations during the clean-up process which severely disrupts a revenue stream.
  • A residential facility or nursing home fields complaints of mold or Legionella which leads to law suits alleging bodily injury, the shutdown shutdown of the facility, and loss profits or rents.
  • Paint, or some other type of liquid substance, runs off your facility into a nearby drain or stream.

Anything come to mind? If the answer is “yes”, or “maybe”, it’s possible the existing general liability insurance won’t completely cover the exposure. No coverage may might be in for an expensive surprise.

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Brian Heun
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KMRD Partners Risk & Insurance Solutions - Are you One Minute From Normal?
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