Many businesses need EIL coverage, and don’t have it. Among the most uninsured types of businesses are contractors, building owners and apartment owners. While business owners are rightly concerned about all the “big things” they can see, they often forget that a single leaky pipe hidden away in the dark can spawn a tiny mold spore. And that tiny spore can grow into a business-killing pollution claim. Every business owner should ask themselves... do I need pollution coverage? There are two broad categories in EIL coverage: Premises Insurance: Pollution and mold that harm others often start at a business location. And that business property owner can be held liable for it. Apartment complexes, warehouses, and any business building can become a threat to the environment. They key thing to remember is that most EIL policies are designed to cover harm to others caused by pollution on their property. Most policies do not cover damage to the owner’s property itself. It’s a liability policy, not a property loss policy. Contractors Insurance: Many contractors are at risk of accidentally causing pollution damage. Spills, airborne contaminates, and mold growth are just a few of the ways a contractor can accidentally leave a place worse than when they arrived. And most general liability policies exclude these pollution risks.
Business should think seriously about taking out environmental impairment liability (EIL) insurance, as it covers harm done to others via pollution not covered by business insurance or general liability policies, wrote property and casualty broker Bruce Sackrison. The EIL policy is a form of personal injury protection that protects the insured against damage caused by third parties such as employers who are responsible for accidents on their premises.