4 questions to identify the risk of pollution-related D&O exposure

Risk needs to be assessed on an ongoing basis. Each time a company adds or even modifies a product or service, a fresh risk is added to the business. (Photo: Shutterstock)

The CEO and board of directors of a large chemical manufacturer know its pollution-related risks and undoubtedly have the required pollution and D&O insurance to cover the company’s exposures. Pollution liability is a key component of risk management at such companies. At smaller companies and nonmanufacturing firms, however, pollution-related exposures may be an afterthought — if they’re a thought at all. And yet, these directors and officers face myriad pollution-related risks that they may be held liable for. Consider these examples: