Pollution coverage is not typically included in commercial package and property policies. Stephannie explains the importance of speaking to your broker about this specific coverage.
One of the most insidious types of claims is that of oil spills, and that is because of the potential costs for remediation, as well as the tedious nature of complying with DEC guidelines. The DEC, or Department of Environmental Conservation, is the governmental entity which regulates and will oversee the clean-up process whenever there is an accidental discharge of a pollutant. An insured must comply with all DEC guidelines and demands in order for the case the be closed in the eyes of the State.
Separate from the DEC demands, however, are those of your insurer. Pollution, as a cause of loss, is often excluded on most commercial package and property policies. If coverage exists, there is often a sublimit or separate deductible applied. You can also opt for a stand-alone policy to provide coverage for pollution claims however, be aware of the stipulations that come with that coverage. Often times, these policies have very strict guidelines for reporting. They may require you to call an emergency hotline to report the claim as well having it sent in by your broker. They may also require you to provide proposals for all work, so that they can approve or deny before the work is done.
Be sure to become familiar with any such regulations before a loss occurs so that you can be prepared to comply with all guidelines and maximize your insurance coverage. This is certainly something with which your broker can assist, so please reach out if you have any questions on how your policy functions.
For more information, please contact us.