An Environmental Impairment Liability (EIL) insurance policy covers damage caused by accidental pollution that arises from standard operations, pollution produced by the businesses products, and any other mishap resulting in environmental damage. For example, if a gold mine spills toxins into a body of water causing contaminated waterfront properties, it may cause millions of dollars in damage. EIL insurance, would protect your business from any liability resulting from that type of incident. Environmental liability policies also cover legal expenses incurred from incidents of contamination or pollution.
Environmental Impairment Liability is crucial when a buyer is purchasing a business or asset that poses any risk to negatively affect the surrounding environment.