Site Pollution Liability insurance is an important risk management tool that can be utilized in all facets of the real estate life cycle – in acquisition, development, financing, operation, sale and even long after the property is divested. In transactions involving properties with known or potential contamination, the policy can back-stop or replace environmental indemnification agreements, escrow accounts or the need for purchase price concessions. For developers of environmentally impaired properties, the policy can effectively manage the risks associated with known or unknown historical contamination. For clients with ongoing operations or lessor’s risk exposures, the policy can provide coverage to insure against the liabilities associated with new pollution conditions. Overall, site pollution liability insurance provides the confidence that you have diligently managed your commercial property’s environmental risks and long-term environmental liabilities.

Commercial real estate owners, operators, investors, developers and managers have environmental risks that are typically excluded under property & casualty insurance policies. Site Pollution Liability insurance can provide broad environmental coverages that supplements traditional insurance. The policy provides protection against claims arising from historic and future environmental liabilities that could result in significant financial loss and impair the ability to sell, transfer or operate a property.

How does Site Pollution Liability Insurance fit into my overall risk management strategy?

  • Coverage for cleanup costs, including emergency response costs and restoration costs, of pollution conditions on, at, under or migrating from a covered property

  • Coverage for third-party bodily injury and property damage claims, including loss of use, diminution in value and natural resource damages

  • Coverage for non-owned disposal site liability

  • Coverage for transportation pollution liability

  • Coverage for business interruption and extra expense, including loss of rental income

  • Coverage for legal defense expense

Basic Policy Coverages

  • Coverage for first-party diminution in value of a covered property

  • Coverage for contingent business interruption

  • Coverage for disinfection expense (of viruses and bacteria)

  • Coverage for cleanup costs of known pre-existing pollution conditions excess of indemnification

  • Coverage for contractual liability

  • Coverage for scheduled underground storage tanks

Additional Policy Coverages

Policy Benefits and Features:

  • Limits of liability up to $50M each pollution incident

  • Claims-made and reported policy form

  • Policy terms up to 10 years

  • Broad pollutant definition includes mold and legionella

  • Third-party bodily injury and property damage for asbestos and lead-based paint

  • Coverage for above-ground storage tanks

  • Assignable to subsequent purchasers

  • Coverage available for U.S. or Canada with properties

Submission Requirements

  • Environmental site assessment reports

  • Purchase and sale agreement

  • Redevelopment plans

TwinElms_Logo (002).png

© 2020 Twin Elms Environmental Brokerage. Designed and developed by Smartners Business.