Environmental Impairment Liability

Although it may vary from policy to policy and business to business, most policies provides coverage for unknown, pre-existing and future environmental liabilities, including the costs below:

• Sudden or gradual pollution
• Cleanup costs, both gradual and sudden
• Bodily injury
• Property or third-party damage 
• Legal costs and expenses 
• Site investigation and assessment
• Business Interruption
• Public Relations and mitigation costs
• Civil fines and penalties
• Emergency response
• Natural resource damage

In today's age, there is immense scrutiny in protecting our planet, and any wrongdoing will get more and more magnified due to tighter regulations and heightened awareness and media coverage. Moreover, these claims tend to be lengthy and may take a considerable amount of time before any agreement or settlement is made. Thus, it can be detrimental as the losses tend to be sizable and can impact future planning. For example, a fire may cause pollution, but the expectation is that you are responsible to remedy the levels of pre-pollution - it is very expensive! It is imperative that proper planning is in place to prevent any ripple effects that may cause complications to matters regarding balance sheet, reputation and microscopic attention into corporate governance activities.

If your assets or business have any relationships with, or are involved with, or have exposures from the below, this is an insurance you may wish to consider:

• Waste, Chemicals, Fuel
• Bulk storage of materials
• Waste water
• Industrial processes
• Transportation of materials
• Construction works
• Contaminated land from historical operations
• Fire

Ultimately, just like all insurance policies, there are multiple factors that insurers take into account when calculating the premium. While claims history, exposure risks and size of the business may impact the cost of an EIL policy, if you take into account the substantial risk that exists, there is value for money to be had.

At CHAZ, we have experience in providing astute and shrewd advice, especially in policies that may be considered complex and difficult to understand. Our guidance does not merely limit to administering optimal coverage, but also mediating any claims in the interest of the client.