§17.15 - Environmental Impairment Liability Coverage

• Jurisdiction: Washington

§17.15 Environmental Impairment Liability Coverage

Following the issuance of the 1970 ISO sudden and accidental pollution exclusion, the insurance industry began introducing the environmental impairment liability (EIL) policy. The provisions of such policies vary widely. The current ISO policy provides for compensatory damages because of bodily injury and property damage and reimbursement of mandated off-site cleanup costs. To be covered, bodily injury or property damage must be caused by a pollution incident from an insured site or waste facility. Typically, such policies are claims-made-and-reported insurance, meaning that both a covered claim has to be asserted against the insured during the policy period and the insured must report that claim to the insurance company during that same policy period for coverage to apply. See generally Mitchell L. Lathrop...