What Is Environmental Liability Insurance?
Environmental Liability Insurance
Ever had one of those days where you burn your toast and spill your coffee and lose your keys? That was me today. Fortunately, environmental liability insurance is capable of dealing with much larger messes than I can!
The industry is under growing pressure to prove its greenness. Some business activities may affect the ground, the atmosphere or the water supply and result in personal injury or damage to property. There is also the potential for immediate harm to protected species and natural habitats. In these scenarios companies may be subject to considerable claims for damages. HDI offers you specialized insurance solutions to protect you against such liability risks.
For instance, gas emissions or spillage of fluids on an unintended scale could significantly affect on the landscape, especially during the construction processes, and threaten the integrity of property and human health. HDI environmental liability insurance protects globally against all claims for damages in that context and allows for companies to take out insurance for direct damage to flora, fauna and natural habitats in the European Union. Cover includes damage to the environment that has taken place on third party land or on the policyholder’s business premises.
Liability Insurance
The need for insurance these days from the general public is of utmost importance owing to the fact that we all reside in a financially insecure world and no one can make certain when financial assistance is needed. Insurance covers enough risk, which acts as a cushion and protects the customer against many eventualities. There are different types of insurance plans as per the requirement. Some of the most popularly acquired policies are Life Insurance policies, Health Insurance Policies, etc.
But, there are other insurance policies which are very specific in nature and cater to a specific need. Policies of this kind are purchased by customers who seek coverage solely for specific matters and not for generic ones such as health and life. This is one of the liability insurances.
The Benefits Of Liability Insurance
Eigenverantwortliche Definition: This is an insurance policy that is typically purchased by companies or individuals who could be held (legally) responsible for injury or issues arising. This is particularly true for hospitals, doctors or even business owners. Such as if a products manufacturer sells more faulty products or damages another person product so he/she can be suit by that person for damages occurred. In case of a lawsuit, this will protect you from any legal fees incurred as a result of consumer damage.
Who Needs Environmental And Pollution Liability Cover?
Examples of industries that may require cover are:
- Construction trades and related workers including plumbing, gasfitting, and electrical.
- Healthcare
- Government and real estate organizations
- Heavy manufacturing
- Agriculture and horticulture
- Redevelopment projects
- Contractors of demolition and earthmoving
- Oil, gas, drilling, and mining contractors
- Remediation contractors: asbestos, amphetamines, emergency clean-up, crime scene cleaner
Liability Risk Management
Risk Tools
Tools and expert systems specific to sectors allow us to do systematic risk analysis. The basis for the risk assessment standards to which we work, is based on continuous observation of the market, decades of wide-ranging claims experience and sector expertise.
Network Of Experts
In complex risk situations we leverage both our internal and external subject matter experts. For the most part, hands-on specialists from the various scientific and research disciplines partner with the client to investigate the specific risks in question.
Why Aig For Environmental Insurance?
Since the 1980s, AIG has long been establishing the environmental insurance needs of organizations, big and small. Solution: Deep industry knowledge of clients’ environmental-specific risk management needs, backed by creative underwriting teams (more than 35 years’ experience across 14 U.S. offices.) Our risk management program evaluations are conducted by in-house engineers averaging 15+ years’ insurance and environmental consulting experience.
“The 24/7 emergency response and crisis management services provided, are utilized as per need and assist to allow pollution incident cleanup and remediation, allowing our customers to have flexible solutions and be helped “at our best” when trouble strikes.
What Does Environmental Insurance Not Cover?
Some business-related mishaps might cause environmental pollution, but are actually covered by policies other than environmental liability.
Exclusions From Environmental Coverage Include:
- No coverage checkmark
- Fire and smoke damage
- If a customer’s property was damaged by a fire caused by your business, it would be covered by your general liability insurance.
If your own business property was damaged, it would be covered by your commercial property insurance or business owner’s policy (BOP). A BOP combines general liability coverage and commercial property insurance in a single policy at a discounted price.
- No coverage check mark
- Hazardous products
If any hazardous or toxic materials were found in products manufactured or sold by your company, you would need to be covered by a product liability insurance policy.
- No coverage checkmark
- Employee injuries and illnesses
If an employee is injured or becomes ill due to a work-related pollutant, such as asbestos at a construction site, workers’ compensation insurance would cover the employee’s medical expenses. It would also cover your legal costs if the employee sued over the injury.
Types Of Liability Insurance Plans
There are a number of liability insurance policies available for customers based on their line of work and requirements. The most common forms of Liability insurance are Public, Product, Employer, and Third-party liability.
Public Liability InsuranceAlthough only certain countries have made this type of insurance mandatory, most industries, especially those that have an effect on third parties such as visitors, trespassers, etc. Regardless of whether it is mandatory or not, most companies procure it so as to avoid unnecessary risk.
Certain small industries do not procure liability insurance policies as the premium is quite high, however, in the event of any claims, the legal costs will usually outweigh the premium costs.
In cases where the risk is extremely high, policy providers either refuse to insure these liabilities or charge an exorbitant premium.
Product LiabilityThis is again not a compulsory insurance requirement in many countries, but it is highly important. This is procured by companies whose products are widely used such as chemicals, tobacco, medical products, food, recreational products, and others.
Employer LiabilityThis type offers cover for liabilities that an employer may incur if an employee is injured during his/her employment due to the job. Sometimes, companies do not deem this as important but if faced with a claim, they might be driven to bankruptcy. Third-Party LiabilityThis policy covers damages caused by the insured to another. The insured is considered as the first party, the insurance company is the second and the third is the injured or the person/company making the claims.
Conclusion
FAQ
Environmental insurance (also referred to as pollution insurance or pollution coverage) provides coverage for loss or damages arising from sudden releases of pollutants that are usually excluded in general liability and property insurance policies.
Environmental Liability Regulations“An operator shall take preventive action where there is an imminent threat of environmental damage. inform the appropriate competent authority of the threat of or actual environmental harm. atone for any environmental harm it has inflicted.”
Liability insurance is a policy that provides cover to businesses/individuals and companies in the event of legal troubles, meaning if they are sued for injury caused to another person by their products and
