Hundreds of locations across Sydney and regional New South Wales have been affected by a recent breach of asbestos-contaminated mulch, prompting a significant investigation led by the Environment Protection Authority (EPA).
The crisis unfolded when a child discovered bonded asbestos in a playground at Rozelle parklands in early January. Subsequent investigations revealed asbestos in mulch at several locations near the park, including various infrastructure projects, schools, supermarkets, and hospitals. Most of the contaminated mulch is alleged to have been provided by a particular resource recovery business and although that company continues to deny any claims that their products are responsible, they will nonetheless obviously be the focus of the EPA investigation and indeed the media spotlight as the ramifications of the breach continue to unravel.
The incident highlights the importance of Environmental Liability Insurance in mitigating such risks and safeguarding not only waste and resource recovery related industries but indeed any potential business whereby you may be exposed to, or responsible for clean up costs or any form of hazardous waste materials – including but not limited to asbestos, ionising radiation, EMF’s and PCB’s. It is worth noting that these type of exposures are excluded from a standard General Liability Policy and require this specific environmental product to ensure your business is adequately protected.
Here’s five key benefits of Environmental Liability insurance and why it is worth considering, particularly in light of the aforementioned mulch contamination:
- Clean-Up Costs: Environmental liability insurance provides crucial financial protection by covering the costs associated with clean up & remediation. The policy is designed to cover necessary expenses required to restore, repair or replace real or personal property to substantially the same condition it was in, prior to being damaged. Without this coverage, businesses could face crippling expenses that threaten their financial stability and viability.
- EPA Investigation & Legal Costs: Environmental Liability insurance helps businesses navigate complex regulatory frameworks and maintain compliance with environmental laws and regulations. It also provides coverage for legal expenses associated with regulatory compliance, ensuring businesses can address these challenges effectively and comprehensively.
- Civil Fines: Environmental Liability can extend to cover Civil Fines and Penalties. In the case of the above incident, businesses found to be responsible for the contaminated mulch could face legal consequences, including material fines and penalties.
- Public Liability Gap’s: As above, a standard Public Liability Policy does not cover events where the insured has failed to take reasonable precautions to prevent pollution – nor if it relates to several of the key hazardous risks such as asbestos, ionising radiation, EMF’s and PCB’s. An Environmental Policy on the other hand, gives clients peace of mind that it will respond in the time of an emergency should the unforeseeable occur when involved with these materials.
- Business Continuity: Ultimately, Environmental Liability Insurance helps ensure business continuity by providing a safety net against the disruptive effects of environmental breaches.
In conclusion, the recent asbestos contamination saga underscores the importance of Environmental Liability insurance as a critical risk management tool for your businesses. By providing financial protection, mitigating risks of exposure, ensuring legal compliance, protecting reputation, and ensuring business continuity, this product offers comprehensive coverage against the unpredictable nature of environmental exposures.
Emjay Insurance Brokers specialises in dealing with industries that are exposed to high risks such as these. Please don’t hesitate to reach out to our team, should you or your business need guidance on your environmental liability exposure or have any queries at all with regards to the above – we would be happy to assist.
