Source: Distinguished Programs

Executive Summary

This white paper discusses the coverage gaps in commercial general liability (CGL) policies for pollution-related losses. It  highlights the need for environmental insurance, such as environmental site pollution insurance, to fill these gaps and  protect businesses and landowners from costly consequences.

Introduction

Whether it is the increased frequency or intensity of natural disasters from climate change, or man-made environmental  conditions, environmental pollution-related losses are firmly in the spotlight and at the forefront of costly consequences  on a reoccurring basis. Many policyholders and brokers mistakenly believe coverage for environmental losses and  damages are provided through their commercial general liability (CGL) or property policies. However, these policies often either restrict or exclude coverage, leaving the policyholder exposed. Pollution conditions can be financially devastating and negatively impactful to reputation, placing the impacted business or landowner in a precarious position. Despite this risk,  only a small percentage of commercial insurance buyers are adequately insured for pollution-related events. Read more.