At some point in time, every commercial insurance agent or broker will face a situation where their client has a potential liability for claims that are excluded from coverage or where available coverage is insufficient. In such situations, breaking the bad news regarding lack of coverage can lead to disappointment and strained client relationships. Nevertheless, with a little ingenuity and gumshoe detective work, there often remain opportunities to find responsive coverage even for significant claims.

Long-tail pollution liabilities are some of the most concerning and difficult to cover risks for companies operating in the United States. In addition to the many state-driven initiatives to address long-standing pollution issues such as those in New Jersey and California, the U.S. Justice Department recently announced on May 5, 2022, a new comprehensive federal environmental justice enforcement strategy. In short, whether as a result of state enforcement, federal enforcement or third-party lawsuit, American companies will need to continuously consider their exposure to environmental liabilities for the foreseeable future. If your client is facing an environmental claim without pollution coverage (or if they are seeking additional coverage beyond that provided on a current pollution policy), here are five questions you should ask before sending them away without coverage and disappointed.