Environmental Glossary
Additional Insured
An individual or entity that is not automatically included as an insured under the policy of another, but for whom the named insured's policy provides a certain degree of protection.
Admitted Policy
An insurance policy that is written and issued in a specific locale, by an insurer authorized to transact business under the confines of the local insurance laws.
Asbestos
A mineral fiber that can pollute air or water and cause cancer or asbestosis when inhaled.
Bioremediation
The use of living organisms (e.g., bacteria) to remove pollutants from soil, water, and wastewater.
Claims Made Based Coverage
The trigger of coverage is a claim being made and reported during the policy period; therefore, insurance coverage is applicable only if the insured files a claim with the insurer during the period expressed in the policy.
Claim
The demand for benefits as provided by the policy.
Commercial General Liability (CGL)
Provides broad protection against situations in which a business must defend itself against lawsuits or pay damages for bodily injury or property damage from third party claims.
Contractors Pollution Liability (CPL)
Designed for contractors to protect themselves against environmental exposures and pollution losses arising from the contractor's work.
Coverage
The scope of the protection provided under a contract of an insurance policy.
Emission
The release or discharge of a substance into the environment.
Endorsement
An addition, not a part of the original contract, which cites certain terms and which becomes a legal part of that insurance contract. Typically, it is an amendment to the policy used to add or delete coverage.
Environmental Impairment Liability (EIL)
Protects business owners from environmental accidents or issues on their premises. Also known as premises pollution or site pollution.
Excess Limits Coverage
Provides coverage against losses in excess of a specified dollar limit.
Exclusion
A provision of an insurance policy or bond referring to hazards, circumstances, or property not covered by the policy.
Exposure
Degree of hazard threatening a risk because of physical conditions, both external or internal.
Extended Reporting Period (ERP)
A designated period of time after a claims-made policy has expired during which a claim may be reported and coverage triggered as if the claim had been made during the policy period.
Exclusion
A provision of an insurance policy or bond referring to hazards, circumstances, or property not covered by the policy.
Hazard
A specific situation that increases the probability of the occurrence of loss arising from an exposure.
Nose Endorsement
An endorsement that will provide coverage for incidents that occurred before the inception of the policy. This is used when converting a claims made policy to and occurrence policy.
Occurrence
An event that results in an insured loss.
Pollution
Any substances in water, soil, or air that degrade the natural quality of the environment, offend the senses of sight, taste, or smell, or cause a health hazard.
Products Pollution
A policy covering all parties responsible for a product where its failure might cause a pollution condition.
Professional Liability
Any situation where the insured may need to make decisions based on his or her professional option. This may include making slight adjustments on the provided plans to get the job done properly, supervising subcontractors, or providing other recommendations which could potentially be questioned in the event of a claim.
Release
Any spilling, leaking, leaching, pouring, emitting, emptying, escaping, discharging, dumping, or disposing into the environment of a hazardous or toxic substance.
Retro Active Date
The date that defines the extent of coverage in time under claims-made liability policies.
Transportation Pollution Liability (TPL)
Covers the insured against pollution conditions arising from the transportation of materials, equipment, etc.
Underground Storage Tank (UST)
A tank that has the majority of its structure beneath the surface of the ground. USTs are designed to hold gasoline, other petroleum products, and hazardous materials.
Wastewater Treatment Plant
A facility containing a series of tanks, screens, filters, and other processes by which pollutants are removed from water.