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Environmental Insurance

In Australia, understanding your environmental exposures and potential liabilities under an intricate and constantly evolving mix of federal, state, and local government environmental legislation is a significant challenge.
environmental insurance
environmental insurance exposures

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:

.. Both on-site and off-site, associated with unknown pre-existing conditions, new conditions, or reopening of previously remediated conditions.
.. Coverage against personal liability for Directors and Officers in cleanup scenarios.
.. Comprehensive protection for third-party claims for bodily injury and property damage.
.. Covering locations where waste was treated, stored, or disposed of.
.. Coverage against environmental damage, including civil fines and penalties (where allowable by law), loss of income, and extra expenses arising from first-party pollution conditions.
.. Coverage for changes in environmental regulations and legal defense costs.
.. Protection against a broad spectrum of pollution conditions, including sudden and accidental events, gradual pollution, and even asbestos releases.
environamental insurance gaps

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.

common 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.

environmental insurance for my business

Frequently Asked Questions

Is Environmental Insurance mandatory?

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.

Does Environmental Insurance cover my employees?

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.

What's the difference between Environmental Insurance and Public Liability 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.

How much does Environmental Insurance cost?

The cost of Environmental Insurance varies based on several factors, including your business type, location, environmental risks, and previous claims history.