Environmental Liability
Accidents sometimes happen with water and soil. Third-party insurance will typically exclude liabilities from pollution.
What is it?
An Environmental/Pollution Liability policy will provide cover to an insured for claims made against it by third parties for personal injury (including death) and/or property damage as a result of a pollution event that is not covered under the third-party liability insurance policy.
It will also provide cover for clean-up costs and expenses either on the insured’s own site, a third-party site or public land if ordered to do so by a public authority.
This cover will also extend to biodiversity risks.
Why?
To protect against claims from third parties or orders by public authorities to clean up a pollution condition that is caused by or exacerbated by or the responsibility of the insured.
Who needs it?
Any party who is carrying responsibility either contractually or otherwise for a site or activities that are taking place at the site. Contractors engaged in the removal or transportation or storage of asbestos and other harmful pollutants.
This will typically include principals/owners, contractors, asbestos removal contractors.
What are some examples?
Example 1
During construction, the contractor is working on a contaminated site and causes a migration of the contaminant to a nearby waterway.
The local public authority orders the contractor that is responsible for the site to clean up the contamination that has migrated from it.
The policy will pay the costs of this clean-up operation.
Example 2
A contractor produces an excessive amount of dust over a long period of time during its construction activities.
The dust is carried by the wind into nearby factory premises and damages some of the factory machinery.
As dust is considered a pollutant and the loss caused by the pollutant was neither sudden nor accidental the third-party liability policy may exclude this loss.
The pollution policy will cover the insured’s liability arising from this event including the cost to repair or rectify the damage and the third party’s consequential losses which resulted from it not being able to use the damaged machinery.
How can I purchase it?
Every client is different, that’s why our insurance service is custom designed for your needs. Click on ‘Contact us’ and you can book a meeting with Cruden Read to determine the most effective and appropriate solution.