Ask yourself these questions
- Are you covered for ‘gradual pollution’?
- Who would pay for a clean-up in the event of contamination?
- How old are your tanks?
- How would the discovery of contamination affect the sale of your business?
General liability
Should an environmental accident occur on your property, in the main it is unlikely that a General Liability policy would fully contribute to any on-site clean-up costs where the spill occurred. Furthermore, certain policies do not consider the soil/groundwater beneath a location to be classified as ‘property’ for the purposes of insurance cover.
So why is an ‘Environmental’ Insurance Policy good?
Essentially, an ‘Environmental’ Insurance Policy does not restrict cover to only ‘Sudden and Unforeseen’ releases but includes cover for loss arising from gradual pollution and also responds to changes in environmental legislation.
Action to clean-up pollution, required by a Regulator under environmental law, might not be covered by traditional insurances. A Regulator is not a Third Party, and therefore any remediation or clean-up imposed by the Environment Agency may not to be considered as Third Party Damage.
Do you know how old your tanks are?
Crucially with this type of enquiry, Insurers will need to know the age and specification of the fuel tanks. Generally, insurers tend to decline to Insure Policyholders where tanks are over 25 years old.
Beware gaps in your cover
This can happen!
www.gov.uk/government/news/tesco-hit-with-major-8million-fine-for-pollution-incident
The summary table also highlights some of the possible gaps in standard Liability cover, highlighting why it is important to consider whether a business needs environmental Insurance. (Please however check with your current Brokers/Insurers for your definitive cover arrangements or refer to us for a free policy healthcheck.)
An Environmental Liability policy can include cover for:
- Loss arising from Gradual, as well as, Sudden and Accidental pollution conditions
- Own site clean-up costs
- Off site clean-up costs
- Third Party Bodily Injury on and off-site
- Third Party Property Damage on and off-site
- Biodiversity Damage
- Defence and assessment costs
- Emergency Response costs
- Mitigation expenses
- Environmental Crisis Containment
Optional Coverages are also available for:
- Business Interruption profit loss and/or extra expense
- Transportation (including loading and unloading)
- Covered Operations (contracted works conducted away from main premises)
Jackaman Ins Services Ltd have sought an Insurer partner to address the potential crisis in the event of a pollution/contamination disaster. Should you wish to discuss your options, please call 01474 557427.
