Genuine environmental insurance needs to have an insuring agreement that provides specific coverage for losses arising from the release or escape of pollutants. At a minimum, the insurance coverage will apply to losses arising from:
- Bodily injury (mirrors and sometimes enhances the definition used in the general liability (GL) policy)
- Property damage (mirrors and sometimes enhances the definition used in the GL policy)
- Cleanup expenses (usually as required by environmental laws with available enhancements by class of business)
- Defenses costs (traditionally included within the limit of liability)
Common optional coverages include:
- Non-owned waste disposal sites
- Transportation of pollutants as cargo
- Business interruption
- Loss of rents
- Extra expense
- Reputational damage
- Midnight dumping on insured locations
- Coverage for fungi/bacteria as defined pollutants
- Amended definitions of cleanup costs for contaminants that are not regulated as hazardous materials (fungi/bacteria)
- Reputational damages
