Environmental Liability Insurance
Environmental Liability, in short, protects specific types of companies that have facilities or sites that hold risk or uncertainty that may affect the environment, or may contaminate a nearby site or facility. Specifically, some companies purchase environmental liability to protect in cases where pollution may already exist and is a known factor within the site that is being worked. Here’s an example:
A company that processes meat has their production facility next to a property with chlorinated solvents. The meat processing plant gets contaminated by the adjacent location and sues their business for a 20 million dollar settlement. Who will pay when this happens? Is your company prepared to hand out over 20 million dollars, including attorney fees? This is why Environmental Liability Insurance has become so necessary over the last ten years.