Environmental Insurance
Discovering Your Real Environmental Exposures
Most clients are often surprised to learn about their environmental liabilities: Landowners, license holders, landlords, tenants, mortgagees/lenders, and even future purchasers can be held responsible for pollution they did not cause.
Directors and Officers can face personal liability for 'clean up' orders regardless of company closure or liquidation.
The majority of 'clean up' costs are incurred on your own premises, something not covered under Third Party Liability insurance policies.
Our comprehensive Environmental Insurance helps mitigate these surprising liabilities, offering coverage for pollution conditions at, under, or migrating from your insured locations.
Exploring the Coverage of Environmental Impairment Liability Insurance
Environmental Insurance covers various financial losses associated with pollution or contamination, such as:
Understanding the Gaps in Your Current Insurance Coverage
While Public Liability and ISR policies can offer some cover for pollution and contamination losses, these policies often leave businesses exposed to significant environmental risks.
Identifying Your Environmental Risks
Businesses can encounter a variety of environmental risks, including:
- Storage, use, and handling of hazardous substances or waste materials.
- Leakage from existing or unknown underground storage tanks.
- Historical contamination from previous site use.
- Asbestos and lead paint present in buildings.
- Contamination migrating from neighboring operations.
- Pollution arising from tenant's activities.
- Our Environmental Impairment Liability Insurance is designed to manage these risks, providing comprehensive protection against potential liabilities.
How Environmental Insurance Can Protect Your Business
Environmental Insurance can provide crucial coverage where traditional insurance policies may not, particularly in relation to pollution-related losses. For instance, in the case of the Hamcor fire, a specialist environmental insurance product with appropriate terms and conditions could have covered the significant clean-up costs incurred following an environmental statutory notice. Traditional Public Liability Policy did not provide cover for these costs as they were not considered ‘compensation’ under the policy wording.
Frequently Asked Questions
While Environmental Insurance is not typically a legal requirement, it's highly recommended for businesses exposed to environmental risks. Certain industries or contracts may also require businesses to have Environmental Insurance.
Environmental Insurance primarily covers environmental pollution incidents that could impact third parties or the environment. It does not cover employee injuries; for this, you would need workers' compensation insurance.
Public Liability insurance covers claims of bodily injury or property damage to third parties due to your business operations. On the other hand, Environmental Liability insurance covers liabilities associated with environmental pollution that could harm the environment or third parties.
The cost of Environmental Insurance varies based on several factors, including your business type, location, environmental risks, and previous claims history.
Other Insurance Covers
Public & Products Liability
Professional Indemnity
Plant & Equipment Insurance
Workers Compensation Insurance
Construction & Contract Works Insurance
