Nevertheless, many organisations are quick to reject the importance of having an insurance policy for environmental concerns—justifying their lack of cover with the belief that their exposures are low or non-existent.
But the harsh reality is that any business has the potential to cause environmental damage. Between pollution problems, poor waste management planning, drainage malfunctions or a fire emergency, your organisation could suffer severe consequences from an environmental disaster.
Review the following debunked myths surrounding environmental cover to ensure your insurance protection is adequate:
- No regulations, no problems—Many organisations forego environmental cover because they don’t think they are subject to any specific environmental regulations. But think again. Regulations such as the Environmental Liability Directive and Environmental Protection Act 1990 require all businesses to take measures to prevent damage to the nearby environment, as well as help fix the environmental damage they have already caused.
- Response planning will save the day—While an emergency response plan can help reduce the immediate costs and damages of an environmental disaster within your organisation (e.g. a fire or drain leak), one-off pollution or gradual environmental damage can linger for years, highlighting the need for a long-term solution like proper cover in addition to robust risk management.
- Existing cover will suffice—Although you might think your current cover (e.g. public liability or property insurance) will protect you from environmental liability costs, such a disaster carries various expenses that simply won’t be covered by other insurance policies.
Ignoring environmental cover today could lead to underinsurance issues in the future—leaving your organisation responsible for the hefty price tag that results from an environmental liability disaster. By purchasing robust environmental impairment liability (EIL) cover, you can have ultimate peace of mind against costly environmental concerns. Especially in the midst of growing environmental risks as a result of climate change, your organisation needs EIL cover.
For more information, contact ICB Group today.
T: 01784 608 100
The content of this Profile is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2019 Zywave, Inc. All rights reserved.