What is Environmental Impairment Liability Insurance?
Environmental Impairment Liability insurance (EIL insurance) is most applicable to addressing sites and facilities. This product is designed to provide coverage for unknown pre-existing, and future environmental liabilities. It can be crafted to provide coverage for claims for bodily injury, property damage, and cleanup costs as a result of a pollution event.
EIL Insurance is also known as:
- Premises Pollution Liability
- Pollution Legal Liability (PLL)
- Site Pollution Liability
EIL policies can also be endorsed to address environmental liabilities associated with transporting waste or products to and from the location. In addition, they can be tailored to provide coverage for the disposal of products or waste at non-owned locations.
Environmental exposures generally stem from a release of a pollutant at a site, the long-term exposure to one, or the incidental exposure to activities of neighbors. Additionally, we see significant claims activity at rural properties with illegal dumping and unregistered tanks, main street businesses like printers, cleaners, service stations, and residential properties with old heating oil tanks and faulty sewer lines.
Who Buys EIL Insurance?
Classes of business that should consider having Environmental Impairment Liability include warehouses, hotels, restaurants, shopping centers, hospitals, senior care/assisted living facilities, apartment complexes, landfills, recycling centers, and any other site or facility.
Policies are structured in many different ways, but common elements of the coverage can include coverage for:
- Third Party claims for Bodily Injury, Property Damage and Environmental Damages at, on or emanating from the insured site.
- Cleanup costs for pollutants discovered at the insured site.
- Emergency response expenses.
- Business Interruption resulting from pollution events
- Claims arising at non-owned disposal sites utilized by the insured
- Claims related to the transportation of waste materials from the site
In addition, some carriers endorse their policies to provide even more enhancements, including:
- Disinfection expense costs for response to CDC required cleanups.
- Image restoration expenses
- Coverage for claims related to transportation and disposal of hazardous waste
- And more.
Request information about EIL coverage for a specific class of business.