Any company that produces toxic or potentially hazardous byproducts should be sure to invest in environmental liability insurance.
Ultimately, this type of coverage can mean the difference between going bankrupt and then losing your business, and surviving a costly lawsuit relatively unscathed. If you own or manage a business that is at risk of producing toxic chemicals or other byproducts, here’s what you need to know about getting environmental liability insurance coverage:
How Environmental Liability Insurance Works
Let’s face it - nobody wants to harm the environment or local communities with toxic materials, but people are people and mistakes do happen. Even when you have the most experienced people working for you, they may still commit errors.
Liability insurance therefore works to protect you in the event of these errors, and your policy will pay for damages (up to your coverage limit) caused by the release of harmful byproducts. In some cases, your policy’s pay out may even help legal claims be settled early, preventing you from having to go through a long, drawn out court battle. This can ultimately help keep your company in business and save both your job and those of your employees.
How to Determine How Much Coverage You Need
There is no “one size fits all” when it comes to liability insurance policies. Instead, it is important that you take the time to evaluate factors like the size of your business, the location, the overall value of your business and of course your actual risk of producing hazardous materials (including the risk of accidental pollution into the surrounding environment). Larger companies with more machinery and employees will usually need higher coverage limits, but so too will any of those at higher risk of environmental violations. When you’re ready,
consult with an insurance agent and discuss your options.