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Site
Pollution
Environmental
Impairment Liability (EIL)
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Site Pollution Liability insurance, also known as Premises Pollution, Environmental
Impairment Liability (EIL insurance), and Pollution Legal Liability (PLL),
is designed to cover claims arising from pollution releases at, on, or emanating
from a specific scheduled location.
A “location” can be as broad
as an entire piece of property or as narrow as a specified storage tank. |
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How
does Site Pollution Insurance work?
Coverage is triggered either by a claim for damages from a third party, or by
the discovery of contamination above “Action Levels” on the insured’s
premises.
“Action Levels” are a very important concept to understand. These
levels are set in every community on a Federal, State, or local level. They represent
the allowable concentration of any contaminant for the area in which the contaminant
is discovered.
Coverage can be constructed to apply to only On Site Bodily Injury, Property
Damage, and Clean Up, or only Offsite, or both.
Policies
clean up pollutants to the acceptable level dictated
by the governing authority. In other words, if you
have pristine land on which you spill diesel fuel,
you will end up with whatever the allowable level of
diesel fuel is by the governing authority.
Coverage can be modified to cover
only new conditions occurring from policy inception
onward, or unknown pre-existing conditions, or
both.
Coverage is very flexible
and
is almost always Claims Made.
Optional Coverage Enhancements:
Mold,
Fungus, and Legionella coverage. Non-owned disposal
site coverage. Illicit abandonment. Transportation
Pollution Liability coverage. Can be packaged with
Products Pollution.
Who buys it?
Property
Owners, Operators, and Managers. Industrial facilities,
including recyclers, storage sites, landfills,
warehouses, manufacturers, etc. Any purchasers
or sellers of properties.
Cost and Limits:
Stand
alone environmental impairment liability insurance
currently costs as little as $3,000. Deductibles
start at $2,500. Limits are available from $500,000/$500,000
to $25,000,000. |
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