POLLuTION LEGAL LIABILITY

pollution legal liability
Pollution Legal Liability (PLL) is an environmental insurance policy that helps cover the environmental risks associated with owning, developing or operating a facility or site. PLL is also
a risk-management tool, with coverage that can help protect buyers and sellers from environmental liabilities in business transactions, for instance, selling a building built on a brownfield
(polluted site). PLL provides environmental coverage for losses due to on- or off-site pollution conditions, coverage for pollution conditions resulting from transportation and coverage
for owned or non-owned disposal site-related environmental liabilities.
Policy Forms: The PLL provides coverage for third party bodily injury, property damage,
first and third party clean up costs and defense costs which arise from operations performed
by or on behalf of the contractor or owner/developer. Furthermore, the PLL can provide
coverage to lenders and other third parties that have an insurable risk in the property.
The PLL is offered with a “claims made trigger” with extensions for mold liability, business
interruption, transportation and non-owned disposal sites.
Policy Term: Up to 10 years – Project policies insuring specific projects including completed
operations coverage. Annual policies for single properties of large property schedules are
available.
Limits of Liability: Up to $100M per loss/$100M aggregate with any one particular carrier.
Up to $250M per loss/$250M aggregate with all carriers layered
Retentions: $10,000 minimum
Premiums: Start at $5,000 for a $1M per occurrence/$1M aggregate
Primary Benefits:
• Provides coverage for past, current, and future environmental issues
• Provides assurance for unknown environmental liabilities in asset transactions
• Commonly accepted in lieu of environmental indemnities or can be structured
to wrap around indemnities
• Insures against business interruption losses resulting from pollution conditions
• Enhances financing prospects by allowing creditor protections
• When broadly structured, can fill the gap in General Liability policies