Do You Need Pollution Liability Insurance?

If you’re like most business owners, you may not have a deep understanding of all of the insurance policies you need to carry to be adequately covered. While many assume that a general liability or commercial property policy will protect them from the range of perils that manufacturers face, this is unfortunately not accurate. If your industry is prone to releasing pollution into the atmosphere, a Glen Rock Pollution Liability for Manufacturers policy is a must. Let us take a closer look at the necessities for this coverage.

Pollution damages can result from a variety of manufacturing operations including plastics, rubber, packaging, electronics, and more. According to Small Business Chronicle, oil refining, for instance, is a process called fractional distillation that heats petroleum to high temperatures to separate it into various grades of gasoline and other petroleum products; Doing so releases sulfur dioxide into the air. Further, other manufacturing types use heat from coal or diesel furnaces to provide steam power to run the plant and burning these fuels can also release pollutants into the air, says the article. While these are all necessary processes for supplementing consumer needs, the effects can be harmful.

The potential for hazardous waste seeping out into the environment and causing injury to others is a real risk for this industry. Therefore, a pollution liability policy will provide protection in the event of bodily injury claims, property damage, and even cleanup of toxic waste materials. Furthermore, this policy will provide adequate legal protection if your business were to get sued for such damages by a third party.

What that said, many companies will not contract with your business or allow your business to be built in the area without showing proper proof of insurance. Up until the mid-1980s, this coverage was included in other policies. However, now it’s considered a separate entity and is a requirement for many pollution-prone businesses.

Of course, we understand that professionals in your industry do their best to secure their operations and ensure that any waste, toxic or not, is disposed of properly. While many claims can be foreseen and managed, not all can be prevented. At David G. Sayles Insurance Services, we understand the risks that many manufacturers face. Our comprehensive policies seek to protect each facet of your operation to ensure you are safeguarded from a variety of financial obligations and claims. For more information, contact us today at (855) 977-1842.