The Many Flavors of Environmental Insurance

The market for environmental impairment liability (EIL) and pollution legal liability (PLL) insurance is approaching its thirtieth anniversary. During those years, the market has developed from a one-size-fits-all approach that consisted of a couple insurers to one that can specifically tailor coverages to the needs of a specific transaction or risk. While increases in capacity and flexibility have created diverse choices for policyholders, failure to understand the nuances presented by the current policy forms presents both challenges and opportunities. This article discusses how the EIL/PLL market has developed and highlights some of the more substantive differences in policy forms that are currently available.