What is Environmental Insurance and Who Needs It?
Under a general liability insurance policy, sudden and accidental pollution third party claims are usually covered. Gradual pollution third party claims, restoration of damaged water species or habitat and own site clean up costs are not.
So how does this affect you?
Leaking underground pipes, leaking oil tanks, spillages – if one of these occur, you will be responsible for the clean up.
The effects of pollution and the subsequent clean up is far reaching. Your public liability insurance will only cover you for third party claims. It will not cover your own site clean up or business interruption. Are you aware of your exposure? Most policies in the 1990’s excluded all pollution risks.
Do not leave your business at risk – contact Bromwall for an Environmental Insurance quotation (pollution insurance).
Its easy to think you will not have a need for environmental insurance, however bear in mind there were more than 45,000 pollution incidents reported to the Environmental Agency in England and Wales in 2003 alone! This is increasing each year.
A general liability policy will not provide cover for liability for clean up costs, damage and clean up to own site, loss of use of third party property, liability for any historical contamination that migrates from your site, the removal of pre-existing contamination on sites, business interruption arising from own site clean up. The list goes on, however an environmental insurance will look to provide this cover.
More often than not, environmental insurance is thought to be mainly for oil spills. This is really not the case. Pollution can be from so many different sources and the effects to business can be deadly. Environmental insurance really is an essential cover.
So Why Ask Bromwall For Your Environmental Insurance?
We are specialist commercial insurance brokers. Trading for more than 41 years, we will asses your business requirements and provide open and honest quotations. We will fully asses your environmental insurance requirements and provide quotations from the leading insurers in this field.
Sample Environmental Insurance Claims:
Clean up costs £100,000
A company was fined as oil was found to be leaking into a stream. The cause was corrosion of an underground pipe, arising from water from a collapsed field drain that had not been checked for seven years. The incident cost the company £100,000 to clean up the mess, a fine of £2000 and costs of £1245. This was not a sudden or accidental event and therefore any third party damage would not be covered. Even if it were, clean up costs are not normally covered under a public liability policy.
Water Pollution £500,000
A massive fire at a chemicals packaging site lead to a serious water pollution incident after contaminated firewater entered a local warehouse. During the blaze people within a 100 meter radius were evacuated due to the thick acrid smoke. The fire was put out with foam and water – contaminated water entered the local water course that fed the main river. The clean up costs of £500,000 would not have been covered under a normal public liability as most policies exclude demands by regulators to pay for a clean up and a property policy would not have covered cleaning up the site where contamination occurred.
Major spillages £1,200,000
A company was fined £15,000 and paid £1530 costs following a major spillage of diesel that threatened a local water supply borehole. The spillage occurred on the company’s site due to a leak on a fuel pipeline between a 4000 litre storage tank and an associated generator. Oil had contaminated the underlying groundwater. The company spent in excess of £1,200,000 cleaning up the contaminated soil and groundwater. Only specific environmental insurance policies would cover you against a loss of this nature.
Milk Spillage £300,000
A 16,000 gallon tanker jack knifed and spilt it contents of milk which ended up in a river. The milk also entered the drainage system and ended up wiping out is stock and effecting the tourist trade in the area.