Environmental consulting contracts can allocate significant professional and environmental liabilities. Professional Indemnity Insurance should not be assumed to cover every obligation accepted by the consultant.

Which clauses can create concern? #

Examples include:

• Broad indemnities.
• Fitness-for-purpose obligations.
• Guarantees of environmental outcomes.
• Unlimited liability.
• Responsibility for existing contamination.
• Liability for work performed by others.
• Unusual warranties.
• Long liability or insurance maintenance periods.

A contract can impose responsibility beyond what the consultant would otherwise have at law. That additional liability may not be fully insured.

Why are environmental contracts complex? #

Projects may involve existing contamination, pollution, remediation, hazardous materials, regulators, third-party property and long-term environmental effects.

The contract should clearly identify the scope and allocate responsibility for existing and newly caused conditions.

Does Professional Indemnity cover pollution? #

Not automatically. Professional Indemnity may address claims arising from insured advice, reports or other professional services.

Actual pollution, contamination, clean-up and emergency-response exposures may require Environmental Liability Insurance. Asbestos-related services or physical work also need specific review because exclusions can apply.

Can Webber Insurance review the requirements? #

Webber Insurance can provide a high-level review of insurance clauses and identify potential gaps between the contract and insurance program.

We do not provide legal advice. A detailed contractual insurance review can be arranged where legal interpretation or amendments are required.