Portable Sanitation Association International

ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION OCTOBER 28, 2020 Page 12 Continued on page 23 Pros and Cons of Pollution Insurance Coverage Do portable sanitation companies need pollution insurance coverage? Like a lot of things in this industry, the answer is "it depends." Some customers and their contracting parameters make a separate pollution policy a requirement for bidding. In those cases, you have to put the pencil to paper and decide if the extra cost is worth what you'll make on the business. But if pollution coverage isn't being required by a customer, here are some things to help you decide whether it makes sense for your company. Standard Vehicle Insurance, General Liability Insurance, and Pollution Insurance Whether you have pollution coverage or not, business owners should make sure their company is adequately insured with a standard insurance policy for vehicles and drivers. You want to be confident these policies provide enough coverage against liability claims related to accidents and cargo. You also want to have a general liability policy that covers any losses in excess of your vehicle insurance limits or that covers losses that would not be handled under the vehicle policy. That is where pollution policies can come into play. A claim arising from your company causing pollution is typically excluded from vehicle and general liability policies. Pollution policies generally cover claims from third parties against bodily injury and property damage caused by hazardous waste materials released during a company's business operations. Usually this insurance not only covers you and your employees while they are completing a job, it also typically covers your "completed operations." In other words, if there is a problem with hazardous waste materials after you have finished the job, you are protected from any liability issues if you carry this insurance. This is why certain types of customers require portable sanitation providers to provide proof of pollution coverage. They want to minimize risk to themselves in case there is a portable restroom spill or truck tip over on their site and someone claims losses due to exposure to our waste or deodorizing/cleaning products. These customers often do not know — or do not care — that portable restroom waste is not hazardous. They are following their understanding of a law, ordinance, or edict from someone such as corporate headquarters or legal counsel. Reasons to Consider Pollution Insurance But forget about those customers for a moment. There may be reasons to evaluate a pollution policy anyway. It is no secret that large trucks emit more pollutants than the average car on the highway. As a result, some trucking companies have suffered having this exclusion due to environmental regulations. In 2019, the Environmental Protection Agency (EPA) announced settlements with six major companies for violating the truck and bus regulations pertaining to emissions. Diesel emissions from trucks are a large source of pollution, relating to health issues like asthma and cardiovascular effects in adults. Many heavy-duty trucks are older vehicles and emit high amounts of pollutants. Totaling more than $450,000, the fines pointed out that the companies either failed to install particulate filters on their diesel trucks or failed to verify that trucks they hired for use complied with state rule. So if you live in—or your trucks are driven in—a state where emissions standards are particularly high, pollution insurance might be worth considering. This is especially true if your trucks are older or primarily burning diesel fuel.

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