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Environmental Liability

Most standard commercial liability or property policies have limited, if any, coverage for pollution claims. Only specific environmental policies would cover you against a major spillage or contamination claims.



  • Major spillage occurred on an oil company’s site due to a leak on a fuel pipeline between a 4,000 liter storage tank and an associated generator – oil had contaminated the underlying groundwater. The company was fined $30,000 and spent in excess of $2,000,000 cleaning up the contaminated soil and groundwater.


  • A back spray occurred in an oil refinery resulting in high volume of property damage claims from the 500 residents whose homes, lawns and cars in the vicinity have been contaminated. The company paid $10,000 fine and over $1,500,000 in property damage claims.