What does an Environmental Impairment Liability Insurance policy include?
Given the wide range of businesses requiring Environmental Impairment Liability Insurance cover and the personal service we offer to our clients, it’s difficult to answer this question definitively. However, a typical Environmental Impairment Liability policy might include liability against:
- products provided
- work carried out away from the business’s premises
- unforeseen gradual pollution arising from the business’s daily activities
- environmental damage
- remediation costs
- regulatory debts
- defence costs for directors
Examples of Environmental Impairment Liability claims
Legal Defence Provided for Subcontractor and Main Contractor
A firm was contracted to perform the re-lining of a culvert pipe as part of a city-wide construction project. During the performance of the work, a local homeowner alleged that inhalation of the fumes from the project caused her to suffer tinnitus (ringing of the ears), dizziness, and other neurological problems. She sued both contractors.
Result – Legal defence costs were provided to the subcontractor, who had an Environmental Impairment Liability policy in place. Both contractors were successfully defended following a court hearing.
Soil Erosion Caused Contamination to Lake
During the construction of a residential community, excessive soil erosion and site run-off from the worksite contaminated a local lake. Several groups sought legal action against the main contractor for this pollution. In addition, it was alleged that the defendant’s method employed to control soil erosion contaminated the site with phosphates, causing excessive growth of algae. The development owner then sued the contractor for breach of contract.
Result – Site run-off is one of the leading causes of water contamination during construction. Fortunately for this main contractor, they were protected by Environmental Impairment Liability Insurance. The run-off and subsequent contamination that caused the operations were covered under their policy and the claim was settled for less than £75,000 by the insurers.
To get personal, professional advice about Environmental Impairment Liability Insurance, call Rob Clapshaw or Stephen Hegarty on 0345 365 2121.