Agriculture Environmental Exposures

Environmental insurance is a specialized coverage for losses incurred as result of a discovery, third-party allegations, or regulatory actions arising from a pollution release at or migrating from an insured property, or because of contracting services performed for a third-party. Coverage enhancements include liabilities resulting from non-owned disposal sites, transportation, contingent business interruption and first-party diminution of property value.

Typical coverage addresses:

• Bodily injury
• Property damage
• Clean-up costs
• Defense costs

From chemical overspray to a leaking aboveground storage tank, your agricultural clients may not recognize the environmental pollution exposures lurking in their operations and the costly consequences they may have on their business.

While some insurance policies offer protection for certain types of pollution-related events, many exclude pollution liability coverages. Such policies leave your agriculture clients to fend for themselves and attempt to adhere to the complex environmental regulations and requirements set forth by the government. So, in addition to obtaining farm insurance, why is environmental protection important for agricultural clients?

Environmental insurance fills the coverage gaps and supplements agriculture coverage by providing your clients with the proper protection. Many Farm policies will limit or exclude pollution coverage to losses at your client’s owned farm locations and only provide 3rd party off-site protection limited only to a sudden and abrupt release or escape of governmentally approved “agricultural chemicals, liquids or gases” which take place within a period no greater than seventy-two (72) hours. A standalone environmental policy from Great American can offer both on and off-site clean-up coverage on a gradual basis (not limited to sudden and abrupt releases) and transportation coverage (including mobile equipment) and includes a broader definition of pollutants which encompasses more than the limited “agricultural chemicals, liquids or gases” covered by a farm policy.

Great American Environmental offers Premises Environmental Liability (PRE) protection that is uniquely designed to fill coverage gaps in policies that exclude pollution associated with typical agricultural operations. The experts at Great American Environmental take your clients’ portfolios to the next level by offering specialized coverage that can protect against complicated and often costly agricultural pollution risks.

For additional examples of real life situations that could easily affect your clients, visit our Claims Scenario Library and explore our Agriculture Riskopolis!