When Is Environmental Impairment Liability Insurance a Good Choice for Your Business?
Environmental Impairment Liability insurance provides coverage for businesses whose operations can result in hazardous waste that poses an environmental threat. It is a company’s legal obligation to ensure the safe handling and disposal of toxic waste materials. Even with the best containment efforts, however, accidents can happen. If contamination occurs, the company is responsible for cleanup and damages and faces potential lawsuits.
EIL Insurance Benefits
Contractors, manufacturers, dry cleaners and chemical companies are all examples of the types of businesses that would potentially benefit from EIL insurance. A good policy helps your company remain operational when you are hit with the costs of litigation, fines or cleanup. It also offers some protection when environmental contamination accidents result in business interruptions.
EIL Insurance Exclusions
EIL insurance is designed to protect companies from the expenses incurred from hazardous waste contamination. Experts in the industry, however, note some important environmental impairment liability exclusions, including:
- Damages resulting from disregard of legal responsibilities
- Claims for damages to insured’s property
- Contamination that should have been expected
- Injuries to company employees
Responsible management of toxic materials is a legal and moral responsibility. Even so, there is always the risk of environmental contamination that results in damages. The best way to protect your business from expensive repercussions is to procure an EIL insurance policy tailored to your company’s needs.