Risk & Business Magazine Nesbit Agencies Magazine Summer 2018 - Page 31

POLLUTION LIABILITY The Growing Importance Of Pollution Liability Coverage O ver the last few decades, the environment has become more and more of a hot button issue. So much so, in fact, that companies are being increasingly held liable for damage they cause to the environment, regardless of whether it is done on purpose or not. Given that, it may come as a surprise that the general market penetration of environmental insurance products is under 10 percent. What may be even more surprising is that the poor penetration of these policies is not a result of excessive price or lack of availability. Rather, it is due to a poor understanding of the policies and their purpose on both sides of the table. Water Act. As an example of how this could affect a business, consider a farm that has a connection to a local waterway. Now that farm will need to be concerned with runoff and other environmental factors that it may not have had to seriously consider before. The issue on the table is twofold: The best way to find out whether you will need a separate policy is to contact your insurance professional and have a frank discussion with them. They will not only know more about your potential liabilities than you probably do but they will also have a thorough knowledge of the emerging environmental insurance market from which to pull policies. In this way, you can both ensure that your company is covered. 1. The risks for businesses are expanding when it comes to the environment. New environmental laws are hitting the books almost every year. Not only are individual states putting the environment first, but so is the federal government, most recently with the expansion of the Clean 2. Environmental damage is quickly being removed from traditional policies. As a result of expanding “contamination” losses, many insurance companies are stripping this type of coverage out of standard policies and creating separate products for them. BY: DAN LYNCH NESBIT AGENCIES One exam