Educational Tools
No operation is invulnerable to environmental risks! Learn about environmental risks and how we can provide custom coverage to protect your clients from exposures they may not be aware exist in their current business operations.
We encourage you to take advantage of these helpful educational tools to discover the right coverage solutions for your clients!
Environmental Insurance FAQS
At Great American we understand environmental liability can be highly complex. Let us help you better understand these complexities and how your clients can obtain policy protection against them by answering the following frequently asked questions by our underwriting professionals!
What is environmental insurance?
Environmental insurance is a specialized coverage for losses incurred as result of a discovery, third-party allegations, or regulatory actions arising from a pollution release at or migrating to an insured property, or because of contracting services performed for a third-party.
Typical coverage addresses:
Coverage enhancements include liabilities resulting from non-owned disposal sites, transportation, contingent business interruption and first-party diminution of property value.
Is environmental protection included in a General Liability policy?
General Liability policies often exclude pollution losses making environmental policies a necessity for many businesses. Environmental policies effectively fill the coverage gaps in liability and property insurance policies.
What are the three core environmental insurance policies?
Premises Environmental Liability Policy insurance policies that provide coverage for first party cleanup costs on and off site, bodily injury, property damage, legal expenses, and diminution of property value. The Premise Environmental Liability policy also covers an insured’s pollution liability arising from non-owned disposal sites, transportation of products or wastes, business interruption and contracting services.
Contracting Services Liability Policy insurance policies that provide coverage for claims in which a pollution incident is alleged to be the fault of an entity engaged in contracting services.
Pollution Liability Policy adds professional coverage to the contracting services coverage.
Why should my clients be interested in this type of protection?
Conventional insurance policies are often very restrictive or exclude coverage for pollution altogether. Insureds are surprised when they realize their general liability policy or property policy do not afford coverage for pollution releases.
Environmental insurance may be a requirement of a contractual agreement between a buyer and a seller, landlord and tenant, lender, and borrower or through a governmental entity.
Every operation has some degree of pollution exposure. Having adequate limits on an environmental insurance policy to investigate a pollution related claim, respond to a claim, or cleanup a pollution condition reduces coverage gaps and preserves limits on other lines of insurance.
What type of coverage is available?
Great American offers an exclusive focus on environmental insurance solutions to a wide variety of commercial clients. Our comprehensive products and services enable businesses to effectively manage risks that could pose threat to their financial security.
1. Premises Environmental Liability Policy: Pollution events can be financially threatening and harmful to the operations of a business and the company’s reputation. Our PRE policy provides coverage for bodily injury, property damage, legal expenses and cleanup costs resulting from pollution conditions associated with a covered location. An Insured’s pollution liability arising from non-owned disposal sites, transportation of products or wastes, business interruption, contingent business interruption, biological hazards and incidental contracting services can be added.
2. Indoor Air Quality and Mold Policy: Mold litigation continues to be an issue throughout the country, resulting in costly verdicts against contractors, property owners and insureds. Our IAQ policy can help keep your clients safe against lurking mold dangers providing coverage for bodily injury, property damage, legal expense and building related cleanup costs resulting from pollution conditions on, at, or within a building on a covered location.
3. Commercial Lender Policy: A lender enters into loan agreements that financially assist their clients to achieve their business goals. But what happens when a borrower fails to honor their obligation to repay the lender? Our Commercial Lender policy is tailored to protect secured creditors from liability arising out of known or unknown pollution conditions at the insured real estate. This policy covers new and historical pollution sites, third party bodily injury and property damage, diminution in value of the collateral, emergency response costs and public relation fees.
4. Contracting Services Environmental Liability Policy: Let’s face it, the construction industry is tough! Through day-to-day operations, contractors may experience bottom line-threatening situations that could result in extensive cleanup costs and legal expenses. Our CSE policy provides coverage for liability associated with bodily injury, property damage, legal expenses and cleanup costs resulting from pollution conditions associated with contracting services, and is offered on both a practice and project basis.
5. Contracting Services Project Specific Environmental Liability Policy: A variety of accidents and environmental exposures have the potential to obstruct project development and cause financial setback. Our CSP policy offers coverage for pollution conditions associated with covered contracting services during the duration of a specific project. This coverage can be extended to include completed operations as well.
6. Professional and Contracting Services Environmental Liability Policy: While some insurance policies offer protection for certain types of professional related issues, many exclude them completely. Fortunately, our PCM policy includes coverage for liability associated with acts, errors, and omissions arising from professional services, in addition to the coverage provided under the Contracting Service Environmental Liability form. Enhancements include coverage for liability associated with owned locations, non-owned disposal sites, and transportation of the insured’s products or wastes.
7. Closure and Post Closure Financial Assurance Policy: A Financial Assurance mechanism mandated by the government is proof of financial security (cash and non-cash) to guarantee the cost of complying with environmental objectives. Our CPC policy is a cost-effective means to satisfy these regulatory requirements.
8. Excess Environmental Liability Policy: Provides additional limits, pursuant to follow-form excess language, to any customer class that has a primary environmental liability insurance policy from an accredited carrier.
9. Products Pollution Policy: Often excluded from an insured’s general liability coverage, our Products Pollution policy provides coverage for loss and cleanup costs as a result of a claim for bodily injury, property damage or environmental damage because of a pollution condition caused by the insured’s product. Products Pollution is specifically designed for the manufacturers and distributors of various products including but not limited to paint and chemicals, metal goods, automotive parts, machinery and machinery parts, plastic and rubber goods, sporting, and outdoor products.
10. Storage Tank Policy: This policy provides primary coverage for above ground and underground storage tanks on an annual basis. Enabling Great American to issue the written certification pursuant to the state and federal financial assurance requirements pertaining to storage tanks.
Great American offers enhanced terms for emergency response costs, additional legal expenses, first-party diminution in value, civil fines, penalties, mold-drying costs, and disinfection expenses.
Download the full FAQ handout to learn more about environmental insurance and how we can help protect against the liabilities that may arise!
Understand Industry Terminology with our Environmental Glossary/Acronym List.
About Great American Environmental
Established in April 2008, Great American Environmental Division is one of the few carriers serving the environmental industry with such longevity. The risks are complex, but our mission is simple: helping to keep businesses strong, and in turn, our world clean for generations to come.
See why we are so committed to this industry
Environmental Insider
Environmental Insider is an industry newsletter created for brokers like you, as a source of ideas and innovations to help you grow your business. Read our articles and subscribe to our quarterly newsletter!
Newsletter Topics
Product Offerings
We offer a complete portfolio of environmental insurance products, including contractor’s and fixed premises pollution liability coverage.
Product Videos
Our product videos illustrate how obtaining a policy from Great American can halt environmental protection concerns by providing a clear, consistent, and competitive solution. When you need responsive insurance services, you can count on us to deliver tailored solutions fast. We hope you enjoy!
Technical Whitepapers
Read how we can provide value added risk control services to current and prospective insureds through our network of specialty vendors, representing diverse capabilities and experience in a variety of environmental areas.
Digging into The City Dreams – Navigating Clean-Up in New York City
Pesky Pesticides: Environmental Risks with Agricultural Operations
Lurking Environmental Dangers of Manufactured Gas Plants
Environmental Justice in the World of Insurance
Environmental Evaluation of Dry-Cleaning Industry
New Resources Available During Coronavirus Disease (COVID-19) Pandemic
Microbial Awareness and Risk Management: GAIG Water Intrusion Management Plan for General Contracting
Environmental Risks of Shopping Centers
Environmental and Toxic Torts - Claims Management of Emerging Environmental Issues
Environmental Insurance Protection: Building on the Past to Handle Both New Regulations and Regulatory Reopeners
The Importance of "Clean Dirt": Examination of the Impact of Using Contaminated Fill
Persistent Claims, Coverage Issues and Trends shaping the future of Environmental Insurance
Risk Management - The Role of Risk Control in Identifying and Mitigating Environmental Exposures
Secured Creditor Protections Supported by Lender Environmental Policies
Claims Scenario Library
Helpful materials ranging from downloadable handouts to interactive riskopolis scenarios, providing examples of the variety of exposures that may be financially threatening to your clients’ business operations.
Claims Scenarios Library
Riskopolis Series
We recognize the challenges that professionals of all kinds face in various lines of work. Let us help reveal these hidden risks! Our Riskopolis Series uses an interactive, illustrative platform to provide examples of the variety of exposures, specific to your client’s operations, that may be financially threatening to businesses. Are your clients protected against lurking dangers?
Program Resources
Great American’s Environmental Division offers a variety of packaged insurance solutions through the programs we have created in collaboration with our valued business cohorts. Visit our Program Webpage for additional details on each of our available programs!
Use the Submittal Checklist to determine if your tank policy meets the requirements for UST financial responsibility.
UST Submittal Checklist
Discover What We Cover: A Great American Environmental Podcast
Great American’s Environmental Division has launched a podcast for environmental brokers! Our episodes will cover numerous topics ranging from industry trends to environmental insurance FAQs. Visit GAIG.com/enviropodcast to learn more.
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