A detailed coverage agreement covering damages resulting from the release or escape of contaminants is a necessary component of true environmental insurance. At a minimum, this coverage applies to:
- Bodily Injury: Covers physical harm to individuals, often enhancing the definition used in general liability (GL) policies.
- Property Damage: Covers damage to property, often enhancing the GL policy's definition.
- Cleanup Costs: Covers expenses required by environmental laws, with possible enhancements depending on the business class.
- Defense Costs: Traditionally included within the liability limit, covering legal defense expenses.
Optional Coverages for Enhanced Protection
- Non-owned waste disposal sites
- Transportation of pollutants as cargo
- Business interruption
- Loss of rents
- Extra expenses
- Reputational damage
- Midnight dumping on insured locations
- Coverage for fungi/bacteria as defined pollutants
- Amended definitions of cleanup costs for non-hazardous contaminants
