Environmental Insurance Calculator

Environmental insurance (Pollution Legal Liability, PLL) protects against claims from contamination — asbestos, mold, underground storage tanks, solvents. Annual rate: 0.10-0.25% of coverage limit. Commercial lenders often require on properties with Phase I findings.

Property value

Coverage limit

Annual premium as % of limit

Policy term (years)

Self-insured retention

Total premium over term

$22,500

Annual premium

$7,500

Net coverage after SIR

$4,950,000

How the math works

Environmental insurance (Pollution Legal Liability, PLL) covers claims from historical or new contamination — asbestos, mold, underground storage tanks, solvents. Annual rate: 0.10-0.25% of coverage limit. 3-year pre-paid policies common on commercial transactions with known environmental risk.

Lenders frequently require environmental insurance on properties with Phase I 'RECs' (recognized environmental conditions). Even Phase I clean properties can benefit from PLL for historical unknown contamination.

How to Use

Enter property value and coverage limit.
Enter annual premium as % of limit.
Enter policy term (typical 3 years pre-paid).
Enter self-insured retention (deductible).
Read total premium and net coverage.

Frequently Asked Questions

When is PLL required?

Phase I ESA reveals 'RECs' (recognized environmental conditions). Historical fuel station, dry cleaner, or industrial use. Lenders often require coverage as a condition of loan when Phase II is recommended but not completed.

First-party vs third-party?

Third-party: claims from neighbors or government for off-site contamination. First-party: your own remediation costs. Most PLL policies combine both; rate reflects the bundled coverage.