Liberty Mutual Canada has rolled out a new product that combines general liability and environmental liability coverage in one package, targeting companies with pollution risk exposures.
The Environmental Protection Insurance Coverage (EPIC) policy is designed for fixed-site manufacturing, processing and distribution facilities. It includes full pollution and product pollution coverage, along with miscellaneous pollution coverage on an occurrence basis, claims-made site pollution liability, on-site pre-existing clean-up coverage and worldwide coverage for pollution incidents linked to a company’s work or products.
Akshat Bhandari, vice president and national practice leader, Environmental & Reinsurance at Liberty Mutual Canada, said the policy is supported by a range of endorsements to allow tailoring to a company’s operations.
“This new product provides companies across Canada – and the agents and brokers who support them – simplified access to broad pollution protection supported by deep claims expertise,” Bhandari said.
Environmental liability insurance in Canada has developed in response to gaps in standard commercial general liability (CGL) policies, which often exclude pollution-related risks. Businesses have traditionally relied on pollution extensions or standalone policies to address exposures from sudden or gradual contamination, waste management, storage tanks or contractor activities.
Since the early 1990s, coverage has expanded to include on-site contamination and first-party clean-up costs. Today, many policies offer “cradle-to-grave” protection, covering the lifecycle of a property or project and including known pre-existing conditions.
The scope of environmental coverage has also broadened beyond heavy industry. Real estate, contracting, and development firms are increasingly required to carry policies, sometimes with limits of around $5 million, even for smaller projects. Insurers and brokers have noted that stricter pollution exclusions in property and CGL policies have made standalone environmental liability coverage more important.
Such policies typically include third-party liability, clean-up costs, emergency response, defence expenses, regulatory fines, and crisis management. Lenders may also use them to manage risks when foreclosing on contaminated properties.
Industry observers say the introduction of EPIC reflects a wider market trend toward integrated environmental products that can be adapted to a range of sectors facing regulatory and operational exposure to pollution risks.
