Does my insurance cover pollution from a fuel spill or concrete washout?
Commercial insurance broker
Your standard insurance may provide only limited pollution coverage for a fuel spill or concrete washout, and in many cases none at all. Most general liability policies contain broad pollution exclusions, and commercial auto policies typically limit pollution coverage to specific situations.
Commercial auto policies may cover some pollution from fuel or fluids escaping from the vehicle's own operating systems in an accident, but coverage for spilled cargo is often more limited. For carriers subject to federal financial responsibility requirements, the MCS-90 endorsement addresses environmental restoration in certain circumstances, but it protects the public, not your company.
General liability pollution exclusions can apply to washout areas, stormwater runoff, fuel storage, and discharges at your plant or on a jobsite. Some limited exceptions exist, but relying on them is risky.
This is why many companies in ready-mix, aggregates, mining, and oilfield transportation buy specific pollution coverage. Options include contractors pollution liability, which covers pollution from your operations, and site pollution or premises policies, which address fixed locations like plants and yards. Some programs also include transportation pollution coverage for spills during hauling.
The right coverage depends on what you haul, where you operate, and what your contracts require. Review your current policies for pollution exclusions and talk through your actual exposures before assuming you're covered.