Protection for owners, operators and tenants from pollution related claims that originate from a specific location. Covers sudden events such as spills and gradual events such as long term leaks or contaminant migration.
Most property and CGL policies exclude pollution. SPL fills this gap and provides dedicated protection for environmental incidents that can trigger cleanup costs, fines & penalties or third party claims. It helps preserve property value, manage risk and meet lender or contractual requirements.
A property owner redeveloping a commercial building uncovered petroleum contamination beneath the slab. SPL responded to investigation, excavation and disposal costs that exceeded $500,000.
A retail property owner discovered their UST had been leaking for years. Contamination had migrated to neighboring properties and groundwater. SPL covered on-site cleanup, off-site remediation and third-party claims from affected neighbors.
A dry cleaning tenant improperly disposed of solvents, contaminating soil beneath the building. After the tenant vacated, the landlord faced cleanup obligations. SPL responded to remediation costs and regulatory compliance.
A commercial building experienced water intrusion leading to widespread mould growth. Tenants reported health issues and property damage claims followed. SPL covered remediation, business interruption and third-party bodily injury claims.
A warehouse fire required extensive firefighting efforts. Contaminated runoff flowed into a nearby stream, triggering regulatory action. SPL covered emergency response, cleanup costs and natural resource damage claims.
How Site Pollution Liability responds to the questions brokers ask us most often.
The trigger is different. Site Pollution Liability follows a location: it responds to pollution conditions originating at the insured site, whoever caused them. Contractors Pollution Liability follows an operation: it responds to pollution caused by the contractor's work, wherever that work takes place. Owners buy SPL; contractors buy CPL.
Pre-existing conditions can be covered on the TerrAssure SPL form. That cover is underwritten case by case and depends on what environmental reporting is available for the site, so expect an underwriter to ask for existing Phase I or Phase II assessments before terms are offered.
Yes. On site and off site cleanup are both covered, so a release that starts at the insured location and migrates off site can be covered along with associated third party claims. Off site migration is one of the main reasons owners buy the cover, because a CGL policy generally will not respond to it.
Business interruption is included on the TerrAssure SPL form, so income loss arising from a covered pollution condition can be claimed alongside the cleanup itself. The specific waiting period, indemnity period and limit are set in the issued policy.
Mould can be covered as a pollution condition at the insured location. Because mould is frequently linked to ongoing maintenance issues rather than a discrete event, underwriters look closely at building condition and any water damage history when setting terms.
Property policies insure damage to the building, not the liability and cleanup obligation that follows a pollution condition. Owners, operators and tenants of industrial, commercial and multi-unit residential property carry SPL to cover the cleanup order, the third party claims and the off site migration that property and CGL forms exclude.
Coverage described here is a summary. The issued policy wording governs in all cases. Ask an underwriter about a specific risk.
A property owner inherits a contamination problem they didn't create. The clean-up bill lands on their desk anyway. Site Pollution Liability coverage exists for exactly this reason.
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Read articleProtect your property with dedicated Site Pollution Liability coverage.
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