Hazardous air emissions, contaminated waste water and polluted soil are all issues that can pose a problem for many manufactures at any given point. While each company follows government regulations to keep contaminates at bay, sometimes environmental accidents occur that are out of our control. Within the last ten years, Environmental Impairment Liability (EIL) coverage has gained in popularity to help protect manufacturers from such incidences. More and more court verdicts are resulting in large penalties for those companies found guilty. It is advisable to check your current policy to see if there is enough coverage to get you through such a situation. Even if you don’t think your operations could pose a problem, your bank and/or landlord may see it differently. Many of my manufacturing clients have been instructed, as part of a mortgage or lease requirement, to purchase EIL coverage regardless.
For more information on what EIL coverage is designed for, I have provided a link to an article published in Cowan Insurance Group’s “The Business Insurance Report“.
David.
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