Premises Pollution Liability Insurance is a form of Environmental Liability Insurance designed around pollution exposures associated with a property or location.

It can be relevant to businesses that:

• Own commercial or industrial property.
• Lease or operate premises.
• Store fuels or chemicals.
• Have historical industrial use at a site.
• Could become responsible for contamination affecting their property or neighbouring land.

What can Premises Pollution Liability cover? #

Depending on the policy, cover can include certain costs and liabilities arising from:

• Sudden pollution.
• Gradual pollution.
• Contaminated soil.
• Contaminated groundwater.
• Third-party bodily injury.
• Third-party property damage.
• Environmental clean-up.
• Pollution affecting neighbouring property.

Some policies can also provide Business Interruption cover arising from an insured pollution condition.

Does the pollution have to start during the policy period? #

Not always.

Specialist environmental insurers can sometimes consider pre-existing or historical pollution conditions, subject to underwriting and policy terms.

Known contamination should always be disclosed.

A policy should not be assumed to cover a pollution condition that was already known but not disclosed.

What about pollution caused by a tenant? #

Property owners can potentially face environmental exposure arising from activities undertaken by tenants or previous occupants.

The extent of cover depends on the policy and circumstances.

Is this part of ordinary Property Insurance? #

Not necessarily.

Property Insurance is primarily designed around physical damage to insured property.

Pollution clean-up and environmental liabilities can require separate specialist Environmental Liability cover.