Pollution poses a serious risk for agricultural businesses, but a new report from Chubb provides risk managers with tips on reducing those risks and addressing potential gaps in insurance coverage.
Agricultural businesses should reassess their insurance programs to make sure they provide coverage for pollution-related incidents, Chubb says. Risks such as fuel or chemical tank spills or runoff into waterways can lead to costly liabilities that are not covered by a traditional commercial general liability policy. Chubb recommends agricultural businesses consider premises pollution liability policies that provide coverage for gradual leaks as well as incidents linked to pesticides, chemicals, fertilizer and other materials.
Other key coverages include first- and third-party bodily injury, cleanup and remediation, costs associated with government actions, and emergency response costs. Coverage should also provide assistance in reporting incidents to the appropriate authorities as well as referrals to experienced contractors and coordination of the response, Chubb says.
The report adds that agricultural companies need to address increasingly strict environmental regulations at the state and federal level, noting that recent regulations from the Environmental Protection Agency have focused on storm water runoff and underground storage tanks in particular.
For more information on agricultural pollution risks and how to mitigate them, see Chubb’s full report: “Agricultural Businesses Face Unrecognized Environmental Risks.”