Environmental Impairment Liability
What this clause says
Vendor shall maintain Environmental Impairment Liability insurance covering pollution release, cleanup costs, and bodily injury or property damage caused by environmental conditions arising from Vendor's operations, with limits of not less than $2,000,000 per claim and $5,000,000 in the aggregate.
What this means in plain English
EIL covers environmental contamination claims - pollution release, cleanup costs, third-party bodily injury and property damage from environmental conditions. Standard CGL policies have absolute pollution exclusions; EIL is a separate purpose-built coverage.
What it means for a CDMO program
Pharma manufacturers, 503B outsourcing facilities, and laboratories handling solvents, hazardous APIs, or radiopharmaceuticals need EIL. Standard limits $2M-$10M depending on facility profile. Sponsor MSAs rarely require it explicitly, but environmental violations can produce material liability that CGL does not cover.
How this evaluates
The Decoder applies these rules in order; the first match wins.
- environmental › limit is at least $2M → Compliant: EIL meets $2M.
- environmental › limit is not set → Borderline: No EIL indicated.
See this in your MSA
Map this clause against your sponsor MSA.
Run the DecoderRelated clauses
Common questions about this clause
- Do pharmaceutical and biotech operators need environmental impairment liability insurance?
- Does property insurance cover validation losses at cGMP facilities?
- What's the difference between products liability and product recall coverage?
- Does a 503B outsourcing facility need dedicated product recall coverage?
- Which MSA clauses require additional insured status for products and completed operations?