Liability insurance

Pollution risk insurance

Pollution risk insurance covers losses and costs arising as a result of damage to the environment caused by sudden and unforeseen circumstances. These risks are often covered as part of a public liability package.

Claims are usually limited to:

• third-party claims from those who suffer as a result of pollution caused by your business activities
• the costs of cleaning up your premises or land following such pollution

The policy may also provide you with some recompense if the pollution is not caused by you, eg if a hotel beach is contaminated by oil.

Public liability insurance covers sudden and unexpected incidents that take place during the insured period. Although this protects against one-off accidents, it excludes any claim as a result of a gradually operating cause, eg slow leakage.

If your business operates in an industry where there is a higher risk of pollution, eg the oil industry, you may want to opt for a bespoke policy, designed specifically for your sector or even your particular business.

This should also cover:

• clean-up costs from any creeping pollution
• damages awarded for injury to people or property
• the cost of investigating and defending the company against such claims

The Environment Agency is responsible for regulating businesses in these circumstances. Read about how the Environment Agency regulates businesses on the Environment Agency website. 

Talk to your insurance broker to find out if such specialist protection would be a good idea for your business.

Subjects covered in this guide

• Introduction
• How liability insurance works
• Employers' liability insurance
• Public liability insurance
• Product liability insurance
• Pollution risk insurance
• Property owners' liability insurance
• Professional indemnity insurance
• Directors' and officers' liability
• Seek specialist advice

 

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