How do you define pollutant? and can it put you out of business?

Organizations in the oil or chemical industries understand the need for pollution insurance coverage. There are many other businesses who don’t think they have an exposure to pollution liability.

A standard general liability insurance policy does not typically cover pollution. The standard pollution exclusion is defined as [any irritant or contaminant.] 

 In fact, most companies have uninsured pollution exposures because no one provided the insight into what could happen at their facilities.

 Consider a few simple examples:

• Your healthcare facility is ordered by Government to shut down due to COVID-19 and the facility needs to be disinfected.
• Ammonia refrigeration system leaks causing a disruption of operations / revenue. Also causes 3rd party facilities needing to shut down.
• An facility adjacent to your plant has a chemical leak causing your entire facility to be shut down for several weeks until the EPA deems it safe to return
• Your processing wastewater runs into nearby stream.
• An air compressor explodes causing bodily injury.
• A food processing facility has a fire creating smoke and a terrible odor. As a result of this event the surrounding residential neighborhood is impaired. The result is the filing of multiple lawsuits.
• Dust from a cyclonic collecting tower explodes causing bodily injury to 3rd parties, property damage and a mandatory clean up by the EPA and the disruption of your company revenue stream.
• A residential facility or nursing home fields complaints of mold or legionella which cause allegations of bodily injury and temporary shutdown of the facility with loss profits and an evacuation expense.
• Paint or other liquid substance runs off your facility into a nearby drain or stream.
• There is a run off of oil coming from an above ground storage tank.

 Could any of these examples happen in your business?

 Bottom Line: If an organization doesn’t carry site pollution liability with business interruption your company is exposed to a financially damaging surprise.