Pollution liability insurance dates back to mid-1980s when polluting industries started facing massive court judgments against them brought about by people whose lives were affected by traceable pollutants. Though the industry has gone through some ups and downs, it's important for manufacturers in Springfield to carry at least a basic pollution policy. 

The Importance of Pollution Liability Insurance for Springfield Businesses

When a measured amount of pollution is released through the manufacturing process, companies can budget a certain amount of money to help mitigate the effects of the pollutants. Over time, this can grow into a major problem if more pollution is being released than what was originally planned. A pollution policy may assist with cleanup costs and liability damages arising from these excess contaminants. 

In the case of a one-time, unexpected pollutant release causing massive environmental damage, the cost to clean up the area can quickly reach into the six figure range, if not more. If the pollution starts affecting the health of people nearby, the resulting lawsuits could cause a company to go bankrupt. A pollution liability insurance policy may help to pay out these claims on your behalf, which might save your business from financial ruin.

An important concept to note in most environmental insurance policies is that accidents are generally covered no matter how big or small they are, but intentional acts are not covered (make sure you know what is specifically covered in your policy as they are all different). Knowingly polluting an area generally means the insurance policy will not cover the costs associated with that release.

Is Pollution Liability Insurance Necessary in and Around Springfield?

Even manufacturers in small towns such surrounding Springfield need to protect themselves from environmental lawsuits, perhaps even more than in other places because pollutants are much easier to trace if there are fewer polluting entities in the area. In addition to businesses being protected while they operate, some pollution policies will cover everything from the time the land is purchased for a business, all the way through to a sale or abandonment of that property. This means that even if the building isn't operable, as long as the premiums are still being paid, any pollution that leaks from the area is still covered, which helps to protect the owners in case of an environmental catastrophe. If this is an aspect of a policy that seems like it would be helpful for your company, make sure to cover that with a local and friendly agent.

A pollution policy may cover lawsuits in the event a company goes out of business or needs to file for bankruptcy protection. This helps to make sure that any victims of a polluting event are made whole even if the business cannot afford to pay either a settlement or a judgment. 

Pollution liability insurance covers the after-effects of the manufacturing process that regular commercial insurance does not. The last thing you want, as a business owner in Springfield, is to shell out hundreds of thousands, if not millions of dollars in order to mitigate the effects of pollution that you thought would be covered under a typical commercial policy.