What is Pollution Liability Insurance?
Almost any business may be accused by a customer, nearby resident, business, government, nonprofit, or regulatory agency of polluting the environment. Up until the 1970s, most business owners policies included coverage from pollution-related lawsuits that were filed against businesses. Since the outbreak of asbestos claims in the 70s, though, businesses generally have had to purchase separate pollution liability insurance to protect themselves from these potential suits.
Pollution liability insurance is a specialized form of liability coverage that helps businesses manage pollution cleanup costs and defend themselves against liability claims related to pollution. Most policies provide protection for claims related to small-scale contamination of groundwater, soil, or air. (Businesses that need coverage for potential large-scale contamination might be better off with environmental impact liability insurance.)
What Businesses Can Benefit from Pollution Insurance?
Any New Jersey business that uses chemicals or materials may want pollution insurance. Not only should businesses that work with materials that are known to be harmful consider purchasing coverage, but even those that use chemicals or materials thought to be safe might want a policy. For, chemicals and materials that are thought to be safe may be shown to be dangerous in the future -- and any company using them might be sued.