What is Site or Premises Pollution Liability Insurance?
Site Pollution Liability insurance, also known as Premises Pollution, Environmental Impairment Liability (EIL insurance), and Pollution Legal Liability (PLL), is designed to cover claims arising from pollution releases at, on, or emanating from a specific scheduled location. A “location” can be as broad as an entire piece of property or as narrow as a specified storage tank.
How does Premises Pollution insurance work?
- Coverage is triggered either by a claim for damages from a third party, or by the discovery of contamination above “Action Levels” on the insured’s premises.
- “Action Levels” are a very important concept to understand. These levels are set in every community on a Federal, State, or local level. They represent the allowable concentration of any contaminant for the area in which the contaminant is discovered.
- Policies clean up pollutants to the acceptable level dictated by the governing authority. In other words, if you have pristine land on which you spill diesel fuel, you will end up with whatever the allowable level of diesel fuel is by the governing authority.
- Coverage can be modified to cover only new conditions occurring from policy inception onward, or unknown pre-existing conditions, or both.
- Coverage can be constructed to apply to only On Site Bodily Injury, Property Damage, and Clean Up, or only Offsite, or both.
- Coverage is very flexible.
- Coverage is almost always Claims Made.
Optional Coverage Enhancements:
- Mold, Fungus, and Legionella coverage.
- Non-owned disposal site coverage.
- Illicit abandonment.
- Transportation Pollution Liability coverage.
- Can be packaged with Products Pollution Liability Insurance.
Who buys it?
- Property Owners, Operators, and Managers.
- Industrial facilities, including recyclers, storage sites, landfills, warehouses, manufacturers, etc.
- Any purchasers or sellers of properties.
Stand alone environmental impairment liability insurance currently costs as little as $3,000, with deductibles starting at $2,500. Limits are available from $500,000/$500,000 to $25,000,000