Think pollution is not a risk for your business? Think again!
It’s not just big chemical companies that face pollution problems. Leaks from oil tanks can also cause river or ground water pollution and companies can face clean up costs for long term pollution, which isn’t covered under normal insurance policies.
The subject of environmental impairment liability (EIL) has risen up the corporate agenda in recent years, following the European Environmental Liability Directive in 2009 and the arrival of the Environmental Civil Sanction Order in 2011.
Recent research reveals that around a quarter of businesses feel that EIL has no relevance to them. Many companies mistakenly believe that environmental issues stem primarily from sudden and catastrophic accidents, and only in the high-risk industry sectors such as utilities or chemicals require such cover. However, businesses across the spectrum – from car dealerships, to hotels, schools, property developers and financial services firms – may find that something more routine such as a long-term leak can lead to a gradual polluting of the environment, which can cost hundreds of thousands of pounds to remedy.
A recent incident involving a producer of pastry products was left facing costs of £800,000 after equipment failure led to the release of cream into a river. This resulted in a biochemical oxygen demand greater than that for untreated sewage, causing significant damage to flora and fauna.
Confusion amongst different policies can leave your business at risk especially where there is a belief that general liability products provide sufficient cover against environmental exposures. With a wide range of liabilities, it is important for businesses to understand where coverage on different policies stop and start, and the potential costs.
If you would like to discuss the options and potential risks to your business please contact us on:
t 01527 834 696
Or complete our CONTACT FORM