Environmental Liability Insurance – who needs it?

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Environmental Liability Insurance – who needs it?

A Major Environmental Liability event can result in first party and third party clean up costs, a third party consequential loss claim, fines and penalties for the entity as well as the individual Director – does your current Insurance Program Protect you?

Every business has a responsibility to ensure they are not damaging the environment. Those that do, whether negligently or not, can be subject to a wide range of clean up costs & EPA Fines and  penalties – not to mention significant reputational damage. Some industries are naturally more inclined to be at risk of damaging the environment: the mining, waste, transportation, construction, chemicals and food production sectors in particular. But any business that has the potential to pollute land, water or air through their activities should have a robust risk management strategy in place;

Consequences of an Environmental contamination event for your business

As governments look to regulatory controls to reduce polluting, Australia’s environment laws are getting tougher – and businesses can be hit with mammoth clean-up costs, penalties and fines for indiscretions.

One high profile incident involving the clean-up of a NSW regional mining site is expected to exceed $400m, which would make it the single costliest remediation project in Australian history. In 2005, the costs to contain Environmental pollution from a NSW heavy metals smelter ran to $60m. Meanwhile, in Victoria, a local council spent over $40m on rehabilitating a disused landfill site which was leaking methane gas.

Most Australian businesses will have some form of Public Liability Insurance in place. However such insurance will only consider Legal Liability for a Pollution event arising from sudden and accidental damage. It will not respond to long term pollution that was not previously known i.e  arising from seepage or first party clean up costs.

That’s why Emjay Insurance Brokers recommends a specifically tailored environmental liability insurance program for businesses at high risk of causing pollution events whether they are site operators or contractors;

The following Insurance cover is available;

  • First and third party clean-up costs
  • First party business interruption
  • Third party injury and property damage
  • Defence costs
  • Reputational Damage
  • Statutory Fines and Penalties for the individual and the entity
    (Not including Criminal Fines and Penalties)

Emjay Insurance Brokers specialises in dealing with industries that are exposed to high Environmental pollution risks. Call us for advice and guidance on environmental liability insurance today on 02 9796 0400.