Environmental liability insurance

With the principle of “the polluter pays and repairs” in our legislation there is a need to recuperate possible damages to the environment that could occur as a consequence of business activities.

The inclusion of the concept of environmental liability in the rules means that those causing contamination must cover the costs of restoration and compensation for any damage that may have been caused.

The environmental liability insurance protects the assets of the company responsible for causing the damage to biodiversity during the carrying out of their activities.

Most important types of environmental liability insurance coverage

Personal or material damages

to third parties inside or outside the insured facilities

Damage to biodiversity

Contamination arising

from transport of goods and/or residues by the insured.

Costs of cleaning up

the new contamination and environmental damage inside or outside the insured facilities.

Costs of prevention and spending on reduction

Interruption

of activities due to contamination.

Defence and securities

Crisis control

What events can activate the environmental liability insurance?

  • The dykes containing water deposits break and mineral waste contaminates a nearby river leaving 55m3 of mud. The damage consisted of human lives, thousands of dead animals, wide areas of protected woodland devasted and water and electricity supplies affected.
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