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What you should know environmental damage and insurance coverage

On Behalf of | Aug 16, 2021 | Environmental Law |

After an event that causes serious pollution or an ongoing environmental hazard comes to light, being able to readily afford cleanup costs may hinge on whether someone has adequate insurance coverage. Without this coverage, cleanup may be cost-prohibitive.

Businesses that engage in activities that involve the possibility of pollution should carry policies as a part of their risk management strategy. Likewise, it may be prudent for people acquiring property to obtain insurance that covers environmental issues.

How can a property owner seek a remedy?

After people learn of environmental damage to property that they own, they can make a direct claim against the party who was responsible. Alternatively, property owners may be able to file a claim with their own insurance carrier. If a property owner elects to utilize his or her own coverage, the carrier may pursue the person or business entity at fault.

Does general liability insurance cover pollution?

Some general liability policies may explicitly exclude coverage for problems resulting from pollution. If a policy does not specifically exclude this type of damage, a general liability provider may bear full financial responsibility.

What insurance specifically covers pollution?

A property owner may be able to get extra protection against pollution with environmental impairment liability insurance. Likewise, businesses can attain policies that provide comprehensive insurance coverage for pollution.

Ultimately, people should seek out insurance that is commensurate with their risk exposure. Being able to manage costs in the aftermath of pollution may be essential to preserving a property owner’s investment or safeguarding a business’ operations.