Pollution events can cause considerable financial harm to every type of vessel owner or operator. It is imperative for them to identify their insurance coverage terms and outstanding needs pertaining to this expansive area of risk.
Identify Coverage Gaps
Ship owners and operators understand how their base commercial liability policies treat pollution. Traditional policies may not offer benefit for this type of damage, or coverage levels may be insufficient to address the full extent of a company’s liability.
Examine Policy Benefits
The proceeds from pollution coverage can equip businesses to handle a variety of expenses. Cleanup costs are among the most critical applications of policy benefits. One or more agencies may have authority to direct clean up efforts, and full compliance is essential in order to contain contaminants as much as reasonably possible and avoid legal problems. Agencies may also have authority to impose regulatory fines.
Ultimately, it is important to remember that large shipping conglomerates are not the only type of business that stands to incur extensive liability from a spill or other accident that causes environmental damage. Vessel insurance that provides coverage for claims involving pollution can enable both small and large businesses alike to offset risks in their operations considerably.