Are you Environmentally Friendly?
Environmental Insurance, formerly known as Environmental Impairment Liability, covers businesses against a range of environmental liabilities and exposures. Designed to respond to all types of pollution, whether it be sudden, accidental, gradual, or part of your clean-up regulatory obligations, this type of insurance ensures you are fully covered as things become more complex over time. Throughout the Asia Pacific, environmental exposures have been amplified by tougher legislation and although business functions may not have changed, the potential environmental liabilities have increased.
You may be uncertain about what environmental exposures you are at risk to and thus have reservations about organising environmental coverage. Environmental liabilities and claims are complex and technical and it is important you have the skilled resources to manage them, however, you can protect your business with an Environmental Insurance policy. It is also important for you to protect your employees, as individual employees can be held personally liable following an environmental incident. Build a strong and responsible working environment and protect against unnecessary risks.
Environmental Insurance is a complex landscape and it can be confusing when trying to understand the risks and exposures that exist. To help navigate your way through this unchartered territory, AIG Insurance has created a list of hypothetical environmental exposures and what you can expect as a result
- Natural Resource Damage
A pipeline ruptures in a protected area and oil is leaked into a natural reserve. Authorities force the business to carry out primary remediation and clean-up along with providing compensation for environmental damage caused to natural habitats and species affected. This type of damage can be complex, with long term planning consequences for the business for years to come. - On-Site Gradual Pollution
A gradual leak from underground fuel oil storage tank is discovered during a routine inspection. The business will be required and responsible for on-site clean-up and remediation. - 1st Party Business Interruption
Heating oil is released from a wastewater treatment station damaging the facility and is rendered unable to treat wastewater. The business operations are interrupted until the plant is cleaned and filters are replaced. - 3rd Party Business Interruption
A chemical storage tank collapses and contaminates a neighbouring installation as well as a nearby river. The industrial park will be shut down for clean-up and remediation, forcing the business’ operations to be interrupted until damage has been resolved - 3rd Party Clean Up
Oil seepage from a transferring pipeline has impacted a neighbouring property. The necessary soil and water clean-up will include continuous pumping of the water table over a 6-month period. - Bodily Injury
During a fire at a plastics manufacturing plant, toxic black smoke was released into the air, reaching neighbouring businesses and residents who have filed 3rd party bodily injury claims against the business. - Property Damage
An ammonia leak at a refrigeration plant causes 200 gallons of ammonia to be released into an adjacent site, damaging pipelines and networks. The third party files a claim for property damage. - Investigation by Competent Authority
A river near a dairy farm is found to be polluted and the business has been asked to present evidence and co-operate with authorities to aid the investigation to identify the party responsible for the contamination - Class Action
A business is suspected of causing contamination to their local water supply and 50 local residents living nearby have undertaken a joint court action against the business. - Burden Of Proof
A business is suspected of causing pollution. The regulator requests the suspected business to take action to mitigate and remediate the pollution. It is discovered later the suspected company was not the polluter but has still been required to incur costs to clean it up. - Contamination Caused By Fire Fighters
After a fire at a metal recycling facility, investigations of pollutant levels revealed that the water runoff from the fire and fire suppression materials had affected the wastewater treatment plant at the insured facility. The business had to pick up all the related costs associated with the clean-up of the plant. - Transportation
A milk tank has overturned and 28 cubic litres has spilled onto the road and into the adjoining fields. The business had to carry out clean-up operations and groundwater monitoring which was required to be mandated by the relevant authorities
Environmental claims are complex and it is important the Insurer and Insurance Adviser handling your claim are experienced and a dependable support during what can be a very stressful period. As environmental regulations and obligations are continually evolving it is important the Insurer and Insurance Adviser handling your claim remain steadfast and innovative, developing their knowledge and skills in line with the growing industry standards and evolving landscape.
If you require Environmental Insurance or would like more information, please call (07) 3217 9015 or send us an email at info@lewisinsurance.com.au
Disclaimer:
This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement.