Massachusetts businesses that use chemicals in their routine operations are generally responsible for damage and/or harm their chemicals cause. Mistakes and mishaps can lead to financial penalties and liability lawsuits, many of which quickly become expensive. Pollution liability insurance helps businesses that use chemicals protect themselves from some of the potential costs that covered incidents might lead to.
Pollution liability insurance policies are highly specialized commercial policies that carry a unique set of protections. Therefore, it’s important to work with a knowledgeable insurance agent when comparing and selecting policies. An agent who’s familiar with the nuances of these policies will know what to look for in a policy’s terms and conditions, and they’ll be able to make informed recommendations.
Many Massachusetts businesses may benefit from having pollution insurance in place. The following are just a few examples of businesses that might want this type of coverage:
Landscaping companies, which use fertilizers, pesticides and herbicides
Pest control companies, which use pesticides
Pool service companies, which use chlorine, stabilizing agents and shock treatments
Automotive garages, which use motor oil, coolant and other harmful fluids
Gas stations, which sell gasoline, diesel and DEF
Manufacturers, which use chemicals in their production lines
Contractors, which use chemical-treated materials
In short, any business that regularly uses, sells or accepts harmful chemicals should consider getting this insurance.
Pollution policies and environmental impact liability policies are similar in that they both offer protections against chemical-related risks. The sorts of risks and amount of protection they offer, however, are different.
Pollution policies are generally designed for businesses like those listed above that might have a relatively minor (although still costly) pollution incident. For example, if a landscaper’s pesticides harm nearby fauna that’s not on a client’s site, pollution insurance might sufficiently cover the incident.
Environmental impact liability policies are normally purchased by businesses that require substantially more protection because they could have a large-scale pollution incident to deal with. Major companies that store and/or transport big quantities of chemicals typically get this type of policy.
Businesses that are unsure which of these two policies makes more sense for them should consult a knowledgeable insurance agent who can offer advice. An experienced agent can make a recommendation after considering a business’ particular situation and risk mitigation needs.
Because these are highly specialized policies, the coverages contained in them can be nuanced and vary from one policy to the next. Nonetheless, there are some incidents that many policies offer standard or optional coverage for. A particular policy might help cover:
Cleanups that are legally required following an unusual incident
Cleanups that are needed due to contamination caused by routine operations
Cleanups of property that a previous owner contaminated
Settlements and legal costs associated with certain pollution-related liability suits
Insurance companies base premiums on many different factors. Some of the items that might impact how much a business pays for pollution insurance are:
What industry a business operates in
Where a business is located in relation to communities
How a business disposes of its chemicals
What chemicals a business uses
Whether a business has a history of filing claims
An independent agent can request quotes from several insurers to give businesses an accurate idea of how much insurance will cost in their specific situation.
For help finding pollution liability insurance that’ll protect your business, contact the independent insurance agents at The Feingold Companies. Our agents have worked with many businesses in Massachusetts, and they’re ready to help your business.