Distracted drivers and an increase in overtime work for truckers can lead to upsets and overturns. Whether it’s a spill at the loading dock, or overturned product resulting from a major highway collision, the liability is the same – if the trucker caused the pollution event, the fleet carrier is responsible for the cleanup, damage, disposal, and any sustained injuries.
Does your fleet have the right coverage to respond?
While you may have an MCS90 endorsement to your auto liability policy, the MCS90 is not an insurance policy itself. Instead, it is a reimbursement endorsement that guarantees the fleet carrier will reimburse the affected party should there be a pollution event. For broad, needed coverage in case of a pollution event, fleet carriers will want to consider a stand-alone pollution insurance policy.
What is pollution insurance?
Pollution, or environmental, insurance offers coverage designed to fill in the gap created by a pollution exclusion present in 98% of commercial general liability policies.
What does it cover?
Pollution insurance covers both first and third party damages arising out of the release, escape or dispersal of an irritation or contamination event. This includes liability for bodily injury, property damage, in some cases clean-up costs, damage to natural resources and defense costs.
How does pollution insurance work?
Fleet carriers will want to consider one of three types of coverage for their pollution risk: the Commercial Auto 9948 policy, a contractor’s pollution liability policy, and a non-disposal site endorsement. Here’s a brief explanation of each:
Commercial Auto 9948 – The CA9948 is a pollution liability endorsement to your auto insurance policy that covers leaks and spills, upsets and overturns while in transport. It does not cover pollution events during loading and unloading.
Contractor’s pollution liability – The contractor’s pollution liability policy covers spills while loading, unloading and in transport, and it covers clean-up costs as well as damage to natural resources. It covers bodily injury, property damage, clean-up, and defense costs as well.
Non-disposal site endorsement – This exposure to risk may be covered in the policy form or by endorsement to a pollution liability policy and it covers the fleet carrier for delivery, unloading, and deposit of a contaminant to the wrong location or deliveries that exceed permitting.
Tailoring pollution coverage to your transportation fleet
Most environmental insurance is sold in the surplus lines market, where rates and policy forms are not standard. Each carrier will not necessarily agree with the next on what is considered a pollutant. Knowing what is covered means understanding what’s excluded and will be key to making sure your policy works for your transportation risks.
Because there’s no standard site pollution policy, fleet carriers must work with their broker to include coverage for loading and unloading of cargo and other risks that are typical to the local climate and environment.
Across industries, pollution insurance is key
Pollution liability insurance is no longer a luxury - or an endorsement that only environmental businesses need. It is a necessity for businesses that want to remain economically viable in today’s litigious environment. As litigation continues to increase, the availability of environmental insurance has also increased, and costs have been reduced significantly, making it easier for fleet carriers to retain a robust pollution policy.
Contact your HUB pollution insurance specialist to find out if you’re adequately covered for pollution liability.
