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Does Environmental Liability Insurance cover environmental clean-up costs?
AI Doc Summarizer Doc Summary

Environmental clean-up costs can be one of the most significant financial exposures arising from a pollution incident.

Specialist Environmental Liability Insurance can provide cover for certain clean-up and remediation expenses.

What costs can be involved? #

Depending on the policy and circumstances, costs can include:

  • Environmental consultants.
  • Site investigation.
  • Soil testing.
  • Water testing.
  • Emergency response.
  • Contaminated soil removal.
  • Treatment of groundwater.
  • Waste disposal.
  • Remediation contractors.
  • Site restoration.
  • Monitoring.

Can clean-up of my own property be insured? #

Potentially.

Some premises-based Environmental Liability policies provide first-party cover for certain clean-up costs at the insured location.

This should not be assumed under an ordinary Public Liability policy.

What about contamination extending beyond my property? #

Specialist environmental policies can also provide cover for certain liabilities and remediation costs where pollution migrates to:

  • Neighbouring properties.
  • Groundwater.
  • Waterways.
  • Other affected land.

Does a regulator need to order the clean-up? #

The policy wording determines the trigger.

Some policies cover specified remediation costs required by environmental authorities, while other circumstances may also be insured.

Should I appoint a clean-up contractor immediately? #

Take reasonable emergency action where necessary to protect people, property or the environment.

However, notify Webber Insurance or the insurer promptly.

Environmental insurers can have specialist incident-response arrangements and may need to approve significant remediation expenditure.

General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.