Business

What is Environmental Insurance?

4:58 AM Parvesh Bravo 0 Comments

It can often seem like you are paying out on multiple insurance policies without any real benefit.  Yet, if you ever have an issue and need the insurance you will be grateful that you took out the cover.  Whilst there are very few policies that must be legally taken out there are many which can provide you with peace of mind and even save your business.  A claim against you can easily financially ruin small and large businesses.

Why Environmental Insurance is Essential

Environmental issues have become more prevalent in recent years; this is because people are more aware of the potential damage that is being done to the environment by companies and individuals.  One result of this is the increase in legislation which deals specifically with spills and other things which can cause damage to the environment.

Unfortunately, it can cost a large amount of funds to clean up any environmental issue.  For example, a chemical spill will need specialist equipment to clean the spill.  There will also be fees regarding medical care for wildlife and potentially human pollution.  Alongside this you may find that you need are unable to continue with business as usual until the issue has been resolved.

All these factors can quickly add to a huge bill.  Unless you have environmental insurance you may find the bill is crippling.

Types of Environmental Insurance

There are actually several different types of environmental insurance.  It is generally considered to be a specialist area and you will need to obtain a custom quote based on your business and the risks involved:
  •  Historical
    This type of cover is designed to deal with pollution which has been caused in the past; potentially before current legislation was in place or when pollution has been continuing unknown for an extended period of time.
    It is possible to get cover for the previous ten years; this can be a blessing to many firms.
     
  • Operational
    Pollution is a daily risk and it is worth having cover to ensure that any unintentional damage caused to the surroundings near you is contained and cleared up as quickly as possible.  To assist with this you will need the cooperation of the local services and their costs will need to be paid.  The insurance firm can make these payments and even deal with the necessary service providers to ensure everything is resolved satisfactorily.
    ·          
  • Remediation
    It is possible that your insurance limits will cut in if you have an ongoing pollution issue; leaving you to pick up any addition costs.  To avoid the risk of this it is possible to obtain a remediation policy which will cover you for the ongoing costs.
Environmental insurance has actually been available since the late 1970’s although it is only in the last ten years it has become an essential part of business.  It is worth noting that every environmental insurance policy is different.  It is vital that you check what is included in your policy before you commit to a specific policy.

Whilst you may hope that you will never need an environmental insurance policy; if you have a pollution problem you will be glad you have one!

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