Does My Business Need Environmental Insurance?

Does My Business Need Environmental Insurance?

That depends on your business activities, but many businesses do need it – even those that don’t consider themselves high-risk for pollution. Environmental risks can arise from things like storage tanks, waste disposal, construction work, manufacturing processes, or even accidental spills.

If your business owns property, operates near water sources, uses hazardous materials, or contracts with third parties for construction, transportation, or industrial services, you may be exposed to environmental liability—even if you follow regulations.

What is Environmental Insurance?

Environmental Insurance, also known as Pollution Liability Insurance, is designed to protect businesses from the financial consequences of pollution-related incidents. These incidents can include:

Accidental spills or emissions

Contamination of soil, air, or water

Mold or asbestos issues

Regulatory fines or cleanup costs

Third-party bodily injury or property damage due to pollution

Key Coverages May Include:

Cleanup Costs (on-site and off-site)

Third-party Liability (bodily injury, property damage)

Legal Defense Costs

Business Interruption due to pollution events

Examples of Businesses That May Need It:

Manufacturers

Contractors (especially environmental or construction)

Auto repair shops or gas stations

Dry cleaners

Real estate developers

Waste management companies

Agricultural operations

Bottom Line:

If your business could potentially cause or be impacted by an environmental incident, environmental insurance can protect you from large, unexpected costs. It’s often excluded or limited in standard general liability policies, making separate coverage essential for full protection.

Would you like help assessing your specific risk or getting a sample policy overview?

Contact our knowledgeable environmental insurance brokers at AnderGray Insurance Services! Phone (213) 769-8001 / email: [email protected]