Environmental Impairment Liability

Environmental Impairment Liability (EIL) Insurance is a form of commercial insurance designed to cover losses and liabilities arising from damage to property by pollution. It is much wider in scope than a Commercial General Liability insurance policy.

If your business handles possible contaminants such as hauling fuel and could have a spill that would endanger the environment then this coverage is important to you. The costs of clean-up are very high.

Most insurance policies allow for very limited coverage for pollution. Often all pollution losses are excluded completely.

Some examples of the type of business that should consider an EIL policy would include, but is not limited to, those whose operations involve:

  • Discharge to the water or soil
  • Use of paints, chemicals or solvents
  • Emissions into the atmosphere
  • Storage of hydrocarbons
  • Hazardous waste disposal

This is a good subject to discuss with your agent or broker. Know what is available to protect you from a catastrophic loss. Control your insurance.