Cargo and Pollution Insurance

When You Need It

It is easy to insure property that stays in one place. If property is being moved from place to place, local, long distance or international, that is where cargo insurance is needed. Cargo is cargo no matter how small.  Whether it is being moved by personal vehicle or large trucking company, the items being moved need to be insured and neither commercial or personal auto policies nor commercial property policies cover cargo.  No matter where the cargo is being moved, how much or by whom, cargo insurance is a must.

Common Carrier Coverage May Not Be Enough

Trucking companies and airlines that move cargo often insure by the pound for pennies on the dollar or even pennies on the $100 increment.  These companies can leave you severely underinsured, especially if you are moving cargo with high value.  A cargo insurance policy can insure for the full value of the cargo no matter how it is being transported.

Pollution is often viewed as something that happens to “other” companies – the ones who deal in hazardous materials and contaminants. The fact is, most businesses (and even most individuals) could become polluters.

Do  You Need Pollution Insurance Coverage?

It isn’t just mining companies, construction sites or fertilizer companies that can cause pollution.  Do you own a vehicle? The fuel in your tank could become a pollutant if spilled during an accident.  Do you own a restaurant? Soot from your cooking equipment and even your cooking oils could be considered pollutants. Also, if you are transporting hazardous material then you will not only need that cargo coverage but the pollution coverage as well. A lot of customers tend to believe that pollution coverage is covered under their General Liability Policy but they would be sadly mistaken.

What Are the Types of Pollution Insurance Coverage?

Insurance companies recognize and insure for two types of pollution: long-term pollution and sudden & accidental.

Long-term pollution (or seepage and pollution) is defined as pollution that happens gradually over a long period of time, such as leaching out. Industries affected by long-term pollution can include gas stations, mining and factories.

Sudden & accidental pollution is defined as happening over a brief period of time or all at once. This can refer to anything from a sudden explosion to a breakdown of holding tanks or equipment.

Give us a call at Trustway and let us determine your risk. (205) 451-1945


How Can You Get Coverage?

The first line of defense is to read your insurance policy.  Is there any mention of pollution coverage? Is it claims made or occurrence? What is the limit?  Is it sudden & accidental coverage or long-term?

Finding the right coverage can be intimidating.  To determine what Pollution Insurance coverage is right for your business, contact a Hayes broker to schedule a risk management review.

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