The Need for Pollution Liability Coverage

All across the state, when a vehicle carrying chemicals or toxins is involved in an accident and winds up polluting a lake or pond, the insured can only address this exposure with one particular type of trucking insurance in Texas. For example, if a freight is hauling drums of oil and one of those drums falls off the truck and spills into a storm drain, in the environmental insurance market, carriers offer transportation pollution liability (TPL) coverage is essential for these types of exposures.

Accidents that occur away from your premises and involve pollutants released due to the upset or overturn of the pollutants themselves or their container would be covered. Having transportation pollution liability provides protection for products or materials transported, shipped, or delivered by a carrier on the insured’s behalf. Environmental carriers typically offer this enhancement on risks with transportation exposures and some carriers will specifically include loading and unloading (which can be the flashpoint for many incidents of this sort).

Addressing the issue of cleaning up spills

After a spill occurs, cleanup costs are typically referred to as a covered pollution cost or expense. Cleanup costs include the cost of testing, monitoring, cleanup and other activities as required to be performed by law (or in the case of a government claim or lawsuit). Cleanup costs are generally covered only if they are incurred as a result of an accident that also causes bodily injury or property damage that is covered by your policy. In essence, the insurer will only pay cleanup costs you incur as long as there is a covered claim for bodily injury or property damage that exists.

While un-endorsed contractor’s pollution liability (CPL) policies may include coverage for vehicle use at a job site, they typically offer little or no coverage for transportation exposures occurring away from the job site. Only a TPL policy would be available to address this exposure. Additionally, TPL is available for specific risks on site with transportation exposures, including manufacturers, freight forwarders, and distribution centers. Speak to an insurer about trucking insurance in Texas that addresses pollution concerns, understands the exposures involved, and can present you with options for coverage that address your specific needs.