A detailed coverage agreement covering damages resulting from the release or escape of contaminants is a necessary component of true environmental insurance. At a minimum, this coverage applies to:
- Bodily Injury: Covers physical harm to individuals, often enhancing the definition used in general liability (GL) policies.
- Property Damage: Covers damage to property, often enhancing the GL policy's definition.
- Cleanup Costs: Covers expenses required by environmental laws, with possible enhancements depending on the business class.
- Defense Costs: Traditionally included within the liability limit, covering legal defense expenses.
