Environmental liability insurance reimburses losses caused to the environment by the pollution of water, air or soil, noise, vibration, radiation, light, heat or smell or other similar disturbance resulting from operations undertaken within a specific area.
As a business, you will face various scenarios in which your business activities may cause environmental damage. For example, damage caused by:
• Your property’s current land use or the historical use of the site;
• A malfunction of holding tanks on your property e.g. an oil tank
• A product your business is transporting e.g. pesticides
• Fire on your property e.g. of composting green waste
• Poorly operating drains causing run-off of oil in water supply e.g. in a car park
• Dust arising from construction work
Environmental liability insurance covers the cost of repairing environmental damage arising from both common law claims, and claims arising from EU legislation.