For instance, automobile insurance is routinely excluded from general liability policies, because plenty of companies solely write such coverage. General liability policies typically do not cover defective products which haven't caused physical injury. Your policy also won't cover environmental damages. If you dump pollution on someone else's property and they sue you, that is not covered. The pollution exclusion in general liability policies is a very complete one, says Carmen Scoppettuolo, a vice president at Robert F. Driver Co. Inc. who specializes in servicing environment-related business.
Environmental insurance is a specialty insurance.
Without environmental insurance, the bank would have to foot the cleanup bill itself, he says. In order to write this type of policy, the insured must undergo a Phase I inspection, which assesses the property needing coverage, says Scoppettuolo. Policies often are customized to fit the business' particular environmental risk, and there are several different kinds of coverage. One is just for cleanup and the other covers you if you're sued for property or bodily injury. But even this specialty coverage has its limits.