Environmental Impairement Liability

Gaps in commercial insurance mean that businesses may not be as protected as they think against environmental damage claims.

Following a high profile incident involving a major solvents manufacturer, most public liability policies now contain a specific "Gradual Pollution" exclusion. This exclusion means that if an accident occurs that has an environmental impact, either on or off site, the cost of clean-up and remediation may not be covered. An insurer is likely to only pay the claim if the event is deemed to be a 'sudden, identifiable, unintended and unexpected which happens at a specific time and place during the Period of Insurance'. This can be difficult for businesses to prove.

There has been an increased focus on environmental pollution since the introduction of 'The Environmental Damage (Prevention and Remediation) Regulations' in 2009. This legislation holds the offending company liable for remedying the situation and the potentially considerable clean-up costs and fines. This is known as the 'polluter pays principle'. With gradual pollution excluded from most Public Liability policies, this can leave business vulnerable to a significant impact on their bottom-line.

CLA Insurance Services can help you fill this gap in cover by providing a specific Environmental Insurance policy to protect your business should an environmental incident occur. Our policies can cover key areas such as:

Coverage for gradual as well as sudden and accidental pollution
Coverage for historic and future pollution incidents resulting from an on-site event
On and off-site clean-up of pollution
Indemnity for directors and employees

Would you like to know more about Environmental Impairment Liability? We have provided a number of documents for you to download from the left hand tool bar.

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