DEFINITION of 'Water Pollution Liability'

Financial and legal responsibility for causing contamination to oceans, rivers, lakes or streams. Entities that cause water pollution can be held liable for cleanup, regulatory fines, damage to third-party property, third-party loss of revenue, loss of public services, damage to natural resources and more. Entities that might cause water pollution include barges, fishing boats, marine cargo, vessels, yachts, tugboats, ferries and others that operate on or adjacent to bodies of water.

BREAKING DOWN 'Water Pollution Liability'

The owners and operators of these boats and vessels, as well as cargo owners, shipyards, and marina owners and operators, can be held liable for causing pollution, which can be financially disastrous. To protect themselves, these entities can purchase some type of water pollution liability insurance. For example, a cargo operator might purchase marine cargo insurance to protect itself in the event that the ship's cargo spills into the water and causes contamination.



RELATED TERMS
  1. Water Quality Insurance Syndicate ...

    An American company that provides water pollution liability insurance ...
  2. Water Quality Improvement Act Of ...

    Legislation that expanded the federal government's authority ...
  3. Absolute Pollution Exclusion

    A commercial liability insurance policy clause that removes coverage ...
  4. Water Damage Legal Liability Insurance

    A policy that provides financial protection to a person or business ...
  5. Air Cargo Insurance

    A type of insurance policy that protects a buyer or seller of ...
  6. Both-To-Blame Collision Clause

    Part of the Ocean Marine Insurance policy that states that if ...
Related Articles
  1. Small Business

    Make Sure Your Business Complies with These 3 Environmental Laws

    Discover why 1970 is considered the year of the environment, and learn about several major environmental laws with which businesses must comply.
  2. Investing

    The Big Play In Pollution Control

    As the world grapples with growing pollution and environmental concerns, the mitigation industry stands to profit. For investors, this often ignored subsector of cleantech could be the way to ...
  3. Investing

    Opportunities In The Emerging Market's Water Crisis

    Water scarcity and increasing demand caused by population growth is one of the most compelling long-term portfolio themes.
  4. Investing

    5 Water Stocks To Tap Into

    An increase in population and pollution has made water a fragile resource.
  5. Investing

    Is Water The Next Big Commodity?

    An increase in both population and pollution has made water a very fragile and important resource. Learn the key players.
  6. Investing

    Four Interesting Ways to Invest in Water (PHO, CGW)

    The U.S. and many other countries are widely expected to invest in water infrastructure and equipment on an unprecedented scale over the next several years – ostensibly to make up for decades ...
  7. Investing

    Water: The Ultimate Commodity

    Opportunities to invest in this scarce resource are flowing freely - dive in!
  8. Investing

    The Economic Effects of Water Shortages

    Raising water prices to dampen demand is a necessary approach to solving the world's water shortage.
  9. Investing

    Occidental Enters Cleanup Agreement with EPA (OXY)

    Occidental entered a $165 million agreement with the EPA to clean up eight miles of the Lower Passaic River.
  10. Investing

    Risks to Consider When Investing in Water

    Investing in water should be a lock. But water is volatile and could see as many risks as potential rewards.
RELATED FAQS
  1. What does it mean to be "above water"?

    The term "above water" is used to describe any situation in which the ending or current value of a subject is higher than ... Read Answer >>
  2. What are the effects of fracking on the environment?

    Understand what environmental concerns exist as it relates to fracking is necessary in weighing the benefits and caveats ... Read Answer >>
  3. Does renters insurance cover water damage?

    Learn how renters insurance provides personal property coverage for items damaged by water only if the water is the result ... Read Answer >>
  4. How can particular scarcities benefit specific stocks?

    Learn about scarce resources, such as crude oil and water. Explore how companies that produce these resources have benefited ... Read Answer >>
  5. What are some examples of how corporations manage short-term investments?

    Learn how a business owner can protect against significant liability by forming a corporate entity structure, and understand ... Read Answer >>
  6. What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider ... Read Answer >>
Hot Definitions
  1. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  3. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  4. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  5. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  6. Nonfarm Payroll

    A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number ...
Trading Center