Water Pollution Liability
What Does Water Pollution Liability Mean?
Water pollution liability imposes legal and financial obligations for both direct and indirect contamination of water bodies, including streams, rivers, lakes, and oceans. Entities found responsible for such contamination may face regulatory fines, compensation for damages to third-party property or loss of revenue, medical expenses if harm is caused to individuals, clean-up costs, and other related penalties.
Insuranceopedia Explains Water Pollution Liability
Operators and owners of boats, vessels, shipyards, cargo facilities, marinas, and other entities operating in or near bodies of water may be held liable for water pollution. To mitigate potential financial losses, they can obtain liability insurance. Water pollution liability insurance covers clean-up costs and provides continued coverage even if the insured company declares bankruptcy. This ensures that clean-up efforts are completed and affected parties are adequately compensated.
