Environmental Liability Insurance
Specialized coverage for claims arising from pollution events, contamination cleanup, and environmental damage, which are typically excluded from standard CGL policies.
Overview
Environmental Liability Insurance (also called Pollution Liability) covers costs associated with environmental contamination — cleanup expenses, third-party bodily injury, property damage from pollution events, and regulatory defense costs. Standard CGL policies contain a pollution exclusion that eliminates coverage for most environmental claims.
When to Require It
Property managers should require environmental liability coverage from vendors performing work that could cause contamination: asbestos abatement, lead paint removal, underground storage tank work, mold remediation, HVAC refrigerant handling, and any construction near environmentally sensitive areas. Typical limits range from $1M to $5M depending on the scope of work.
Verification on a COI
Environmental liability appears as a separate policy line on the certificate, not as part of CGL. Look for "Contractors Pollution Liability" or "Environmental Impairment Liability" in the coverage description. Verify that the policy covers both sudden and gradual pollution events, as some policies only cover sudden, accidental releases.
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