The towing industry in the United States involves the operation of heavy-duty vehicles and equipment that emit harmful pollutants into the environment. These pollutants can have negative effects on the air, water, and soil, which can lead to health problems for people and damage to ecosystems. As a result, there is a growing need for the towing industry to have pollution insurance coverage.
Pollution insurance can provide protection for towing companies in case they are found responsible for causing pollution or environmental damage. For example, if a towing company’s vehicle leaks oil or fuel onto the ground during a recovery operation, the company may be held liable for the cleanup costs and any resulting damage. Pollution insurance can help cover these costs and provide financial protection for the towing company.
Michael Henk, former Philadelphia Insurance AVP and currently President and Chief Underwriting Officer of Strava Specialty an expert in the pollution insurance field said “Let’s clear-up some confusion about typical Commercial Auto (CA) and Commercial General Liability (CGL) policies. First, the CGL policy will have either the Total Pollution Exclusion or, more likely, the Absolute Pollution Exclusion attached. Those forms say it best little or no coverage. This coverage gap these forms created was the catalyst for stimulating the launch of the pollution insurance industry as we now know it. As for CA, depending on policy structure, various limited coverage “give backs” exist, such as the “fuels and lubricants” exception providing limited coverage for pollution in the case of resultant Bodily Injury (BI)/Property Damage (PD), but not in the absence of such. Further, typical pollution exclusionary language in the CA excludes coverage for pollutants being transported or towed by the insured. In short, neither the CGL nor CA is likely to provide the breadth of coverage a commercial towing company needs to adequately protect itself from pollution loss resulting from their operations.”
Furthermore, many cities and municipalities now require towing companies to have pollution insurance as a condition of doing business. Without pollution insurance, a towing company may not be able to operate in certain areas or win certain contracts.
In addition to the legal and regulatory reasons for having pollution insurance, it is also important for towing companies to consider their reputation and public image. By having pollution insurance and demonstrating a commitment to environmental responsibility, towing companies can build trust with customers and the community at large.
Overall, pollution insurance is an important consideration for any towing company in the United States. It can provide essential protection against environmental liability, help meet legal and regulatory requirements, and demonstrate a commitment to environmental responsibility.
When looking for a tow truck pollution insurance policy, there are several types of coverage to consider. Here are some of the key coverage options you may want to look for:
Pollution Liability Coverage “FOR YOUR LOCATION”: This coverage provides protection against claims related to pollution incidents caused by your tow truck operations. It can cover costs associated with cleanup and remediation, as well as third-party claims for bodily injury or property damage.
A “Claim arising from a Pollution Condition on, at, under, or migrating beyond the legal boundaries of Your Location” refers to a situation where your business activities have caused or contributed to a pollution event that affects areas beyond the physical boundaries of your business location. This could include situations where pollutants or contaminants have been released into the air, soil, or water, and have migrated beyond the physical boundaries of your business location, potentially causing harm or damage to nearby properties or natural resources.
For example, if your towing business operates near a river and accidentally spills diesel fuel while refueling a tow truck, the fuel could seep into the soil and eventually migrate downstream, contaminating the river and potentially affecting the health of aquatic life and nearby communities. A claim arising from this pollution event would involve damages or injuries caused by the contamination beyond the physical boundaries of your business location.
A “Claim arising from a Pollution Condition on “JOB SITE”, at, under, or migrating beyond the legal boundaries of Job Site” refers to a situation where your business activities have caused or contributed to a pollution event that affects areas beyond the physical boundaries of the job site where your work is taking place. This could include situations where pollutants or contaminants have been released into the air, soil, or water, and have migrated beyond the physical boundaries of the job site, potentially causing harm or damage to nearby properties or natural resources.
For example, if your towing company is working at a job site where a vehicle has overturned and is leaking fuel, and the fuel seeps into nearby soil and migrates beyond the physical boundaries of the job site, contaminating neighboring properties or natural resources, a claim arising from this pollution event would involve damages or injuries caused by the contamination beyond the physical boundaries of the job site.
A “Claim arising from a Pollution Condition on a “NON-OWNED DISPOSAL SITE” on, at, under, or migrating beyond the legal boundaries of Non-Owned Disposal Site” refers to a situation where your business activities have caused or contributed to a pollution event that affects areas beyond the physical boundaries of a non-owned disposal site where you have deposited waste. This could include situations where pollutants or contaminants have been released into the air, soil, or water, and have migrated beyond the physical boundaries of the disposal site, potentially causing harm or damage to nearby properties or natural resources.
For example, if your towing company deposits waste at a landfill or other non-owned disposal site, and the waste contains hazardous materials that are not properly contained, and these hazardous materials leach out into the soil and migrate beyond the physical boundaries of the disposal site, contaminating neighboring properties or natural resources, a claim arising from this pollution event would involve damages or injuries caused by the contamination beyond the physical boundaries of the disposal site.
A “Claim arising from a Pollution Condition resulting from “TRANSPORTATION” refers to a situation where your business activities have caused or contributed to a pollution event during the transportation of materials or goods. This could include situations where pollutants or contaminants are released during loading, unloading, or transport, and cause harm or damage to nearby properties or natural resources.
For example, if your towing company is transporting a vehicle that is leaking fluids such as gasoline or oil, and the fluids spill onto the roadway or surrounding environment, causing contamination and potentially harming nearby properties or natural resources, a claim arising from this pollution event would involve damages or injuries caused by the transportation-related pollution event.
“POLLUTION PROTECTIVE LOSS COVERAGE” is a type of insurance coverage that provides protection to a business for losses resulting from pollution events. “Pollution Protective Loss” refers to losses that are not covered by the insurance policies of “SUBCONTRACTOR” or by any applicable retention amounts (i.e., deductibles) that are required by those policies.
Meaning, the insurer will indemnify you for pollution protective loss in excess of all applicable subcontractor’s insurance and the applicable retention resulting from a pollution condition on, at, under, or migrating beyond the legal boundaries of a job site or a pollution condition resulting from transportation. This means that if your business activities cause or contribute to a pollution event at a job site or during transportation, and the losses resulting from that event exceed the coverage provided by subcontractor policies and any applicable retention amounts, your insurer will cover the excess losses up to the limit of coverage specified in the policy.
“CLEANUP COSTS” This coverage can help pay for the costs of cleaning up pollution incidents, including spills, leaks, and other environmental damage caused by your tow truck operations.
“LEGAL DEFENSE COSTS” In the event of a pollution-related lawsuit or claim, legal defense coverage can help pay for the costs of defending your towing company against allegations of pollution or environmental damage.
It’s important to carefully review the policy’s coverage limits, exclusions, and deductibles to ensure that you have adequate coverage for your towing company’s specific needs. Additionally, consider working with an experienced insurance broker or agent who can help you understand your coverage options and find a policy that meets your company’s needs and budget.