| Pollution, it could be your problem |
| Environmental pollution is a hot
issue and most businesses have to take great care in not polluting
the neighbourhood or the atmosphere. Seepage of oil from tanks, the
growing practice of building on brown field sites, polluting rivers
and streams from escape of effluent and disposal of waste are all
issues that businesses have to face with growing vigilance but the
insurance position is not straightforward.
Pollution can: Liability under the law has been extended so that someone has to pay not only for any damage caused by pollution but also the clean up costs for active or passive pollution. This may be irrespective of who is to blame. The polluter must pay and current owners of property may well find that they have a liability for pre existing contamination even though they did not cause it. Land that is contaminated or businesses with a risk of liability for pollution are difficult to sell and there is the spectre of more draconian legislation in 2007 as a result of a EU directive. Public liability policies are likely to cover businesses against sudden and unforeseen pollution traced to a specific event caused by negligence. It will also probably cover liability for cleaning up the pollution on third party land. It does not cover gradual pollution such as seepage nor does it cover clean up costs on a business’s own property. To provide full protection, a special cover called environmental impairment liability cover is required. This is only available from a few insurers and normally requires an in-depth survey of the inherent risks and how these are managed. Any property owner or business needs to consider if this wider cover is appropriate for them. We are happy to provide any advice if required. |
