What is Site or Premises Pollution Liability Insurance?

Site Pollution Liability insurance 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.

Site Pollution Liability Insurance is also known as:

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.

Check out a recent Premises Pollution account we wrote!

Site Pollution Policy for a County Government Parcel of Land
Beacon Hill recently bound coverage for a county government location, providing a $10M limit, 10-year Site Pollution Liability policy. Coverage is for a parcel of land that was previously a scrap metal yard which has been developed into a park with baseball fields. There was soil contamination on the parcel that had been remediated, but the county still wanted a Site Pollution policy. This account required extensive analysis of several environmental reports in order to get a full understanding of the exposure. We were able to get options from multiple carriers and our ability to match the expiring coverages and enhancements quickly and efficiently helped us bind this $115,000 account.

Additional Resources: 

Package Cost:

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