When you buy a business owner’s policy, usually called a BOP, you’ll probably get property insurance. So, if a hazardous event damages the property, then you might have help rebuilding the structure and getting back to work. But, recovery isn’t just about rebuilding; it is also about cleanup. And sometimes, cleanup can get very costly, especially if it involves pollution. The question is, will your insurance pay for the recovery?

In many cases, your BOP can cover costs related to cleanup and debris removal from the property. However, check your insurance coverage carefully, as policies might only pay for cleanup in certain cases.

Coverage for Debris Removal and Pollution Cleanup

A BOP’s property insurance helps you pay for the costs to repair or rebuild your business following a damaging occurrence. However, to start rebuilding, you likely have to clean up the space and haul away any damaged items. Often, your BOP will help you cover certain expenses related to such losses. Some of the offered coverage might include:

• Debris removal coverage will help you pay the costs of hauling away the damaged items. Therefore, you can have a clean property before you start repairs.
• Pollution cleanup insurance pays in case damage to your building or contents contaminates the local environment. For example, if a storm damages solvents stored on the property, they could leak into the surrounding area. This coverage helps pay the cleanup costs.
• Fungi, rot and bacteria protection pays when certain damaging accidents lead to the development of these problems. Coverage can help pay for the cleanup and removal of these hazards.

However, you can’t assume that these policies will pay in all cases. Usually, they will only pay when a covered hazard causes the damage.

When these Policies Will Pay

Let’s say that a severe storm hits your business. It causes severe damage to a wing of the business. There is a partial collapse, and during the accident, an antifreeze storage tank ruptures and spills contaminants into the land around the property.

In these cases, your debris removal and pollution cleanup coverage might help you pay for the losses. Coverage might help you hire a company to haul away the debris from the damage. Pollution cleanup protection can help you pay to clean up the spilled antifreeze.

However, what’s important to remember is that your policy will only pay you if a covered accident, like a severe storm, damages the property. Should you simply let neglect cause the collapse, then your policy likely will not pay for any of the recovery costs.

Talk to your insurance agent about how your policy will pay for cleanup costs following damaging accidents. They can tell you the specific ways your BOP will apply to your losses.