Most companies know the risks involved when their trucks are on the road. One potential hazard to consider is what happens when their company car is involved in an accident with another vehicle that leaks toxic chemicals. Exposure to these chemicals may lead to illness, property contamination, and even damage to local bodies of water. Your liability coverage should kick in to cover you during this situation. However, some commercial auto insurance policies contain pollution exclusions. This means that some pollution-related claims may be denied. Here's a closer look at pollution coverage for commercial auto insurance.
Pollution exclusions in commercial auto insurance policies contain a few scenarios where your claim should be accepted. The pollutants may damage property and require a significant cleanup. Covered pollution costs are included in commercial auto policies. Covered pollution costs include authorized testing and monitoring on the property mandated by the government as a result of the claim. The cleanup costs are covered if the pollutants accidentally cause harm.
Property damage repair costs are also covered if a lawsuit arises. The cleanup costs are excluded if you don't have accidental injury or property damage coverage included in your commercial policy. It's essential to look over your policy carefully. You could deal with fines, sanctions and lose your business if left unprotected in an accidental pollution spill.
Some harmful chemicals are essential to vehicle performance. To function properly, your cars need gas, oil, exhaust, and brake fluid. Your business is covered if harmful chemicals are exposed and damage property as long as they are released from the area designed to hold them. For example, you would not be covered if oil spills out of your car instead of a valve or exhaust pipe. You are also protected if the vehicle is a classified auto.
Another potential exception is damage due to an overturned container during an auto accident. Be aware, though, that a few detailed points are essential to your claim. The accident must occur away from your commercial property and include a covered vehicle. Also, the container carrying pollutants cannot be stored inside the vehicle.
Pollutants are necessary for your commercial vehicles to function correctly. However, there are some situations where you may be left unprotected if chemicals spill during an auto accident. If you need help with how to proceed, contact the team here at CF&P Insurance, so we can help you find the right policy to protect your business in every situation.
