Failure to comply with regulations and or maintain proper standards can lead to high costs—from initial clean-up fees, remediation costs, fines and penalties to even imprisonment.
Standard public liability policies typically limit cover to third-party bodily injuries or property damage from pollution caused by a single, sudden and accidental incident, and they usually do not cover pollution from expected or gradual causes. This can leave a massive exposure gap. Environmental impairment liability, or environmental insurance, can plug this gap and go even further by offering cover for clean-up costs.
Policies will vary widely based on the insurer, so businesses need to make sure they know exactly what their policy contains. Typical policies can include:
The insured will typically have a duty of mitigation, meaning that it must take all actions to minimise the extent of the damage and prevent it from spreading.
For businesses that have a high rate of pollution potential, there may be bespoke cover available. This can include policies for:
Environmental impairment liability policies change from insurer to insurer. By working with Willis IRM, you can rest assured that your policy fits your business’ needs and keeps you compliant with the latest, most stringent regulations. We will work with you to help gauge your risks and make sure your business stays up and running, all while minimising its negative environmental impact.
If you would like to review your existing environmental cover with us or would like one of the team to call you, simply use the query form below.