All About Environmental Impairment Liability Insurance

In the 1970s, the Environmental Protection Agency was created in response to a number of environmental issues that were threatening the countries resources like never before. From deteriorating air quality to finding ways to cut down on pollution from vehicles, the EPA made it a point to improve the environment before it got out of hand.

From this legislative move a new type of insurance coverage was created to protect companies from claims related to pollution and other resource-threatening issues. Environmental impairment liability insurance was made in response to the government taking steps to fine and bar companies that were adding to the pollution being produced without any borders or regulations.

And while companies are more careful about the quality of the air and the resources around them, they can still benefit from having environmental impairment liability insurance in place to provide long-term coverage.

What is Environmental Impairment Liability?

Also known as EIL insurance, this kind of policy helps companies and contractors who are engaged in jobs that have toxic by-products involved. Any hazardous waste is more often than not carefully contained, but sometimes there is some seepage that takes place, contaminating the surroundings, including vegetation and local water pipelines.

When something like this happens, companies are hit with fines and ordered to clean up any messes. This can be an expensive step and can even lead to more expensive legal issues, such as litigation and paying out lawsuits. EIL will cover many costs associated with a claim so that a company can continue to operate without too much interruption.

What is Excluded?

While environmental impairment liability insurance policies can provide a wide range of benefits and coverage for policyholders, there are some limitations in store that may affect its protection. These exclusions include:

  • Damage that was intended or should have been expected
  • Damage to the insured’s own property
  • Bodily injury to any employee of the policyholder
  • Damages that are a result of willful non-compliance within the law