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Pollution legal liability Insurance functions as a risk management tool for residential, commercial and industrial property owners. The policy provides protection against claims arising from unknown historic and future environmental liabilities that could impair an owner's ability to sell, transfer, develop or operate property. This coverage can provide protection against regulatory risk, should the action levels for specific contaminants change over the policy period. In addition, the risks of acquiring or making new investments in commercial properties are minimized when a pollution legal liability insurance policy is in place before closing. The policy can replace the need for indemnification agreements, personal recourse guarantees, escrow accounts or price reductions that buyers and lenders often require. These policies provide the confidence that you have diligently investigated and managed the risks and long-term liabilities associated with ownership of environmentally impacted property.

Pollution Legal Liability Policy

  • Policy terms up to 10 years

  • Policy limits up to $50,000,000

  • Minimum premium for 10-year term starts at $100,000

  • Can cover both unknown pre-existing pollution conditions and new pollution conditions 

  • Claims-made policy form

  • Coverage Triggers: Discovery, Third-Party, or Government Mandate

  • Flexible Deductible/Premium Structure

  • Transferability to future owners

Policy Features

  • Clean-up costs for first-party on-site discovery and third-party claims

  • Third-party bodily injury or property damage on- and off-site

  • Natural resource damage

  • Loss of use and diminution in value of third-party property 

  • Legal defense expenses

  • Pollution definitions can include mold, legionella, viruses, bacteria

  • Underground and above ground storage tanks 

  • Environmental liability(ies) assumed under contract

  • Notice of possible claims notification

  • Coverage of non-owned disposal sites 

  • Coverage of warehouse/distribution sites

  • Business interruption actual loss or rental income

  • Transportation

  • Crisis response

Standard Coverages

  • Some enhancements carriers can provide under pollution legal liability policies include

  • separate defense outside of limit of liability

  • bacteria/virus clean-up costs coverage

  • contingent business interruption and soft costs

  • acquired and divested properties by endorsement

  • illicit abandonment

  • products pollution coverage for pollution conditions caused

  • by the failure of an Insured's product

Optional Coverages

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