This can include toxic substance spills, chemical spills, hazardous waste spills, etc. Environmental insurance can also address pollution claims caused by professional malpractice, and it can meet many other special needs. By encouraging commercial property transactions, these policies can help local business and commercial property owners. Purchasers require enough income to sustain themselves, their businesses, and to repay their purchase money loans. Pollution insurance helps guard against this potential problem.
Sellers also benefit because when they sell, they never want to hear about the property again.
An environmental claim, filed years after the sale, can therefore be a most unwelcome event. Pollution insurance provides sellers with a way to cope with these kinds of pollution related claims, which may be asserted years after they sell the property. A pollution claim can greatly reduce the value of a bank's collateral. Pollution insurance provides the bank with comfort in knowing that property held as collateral will not lose its value due to an environmental claim. While some form of this insurance has been available for 10 years, according to Noble it has only been widely available for the past three years.