Management of construction companies are well aware of the importance of an environmental risk management plan and the dangers associated with polluting the environment.
Environmental assessments and risk management plans need to ensure all measures are put in place to protect the construction entity – for example, positioning of bunding and drainage systems to divert flow away from potential hazards; full surveys of site to ensure no habitat destruction; and any environmental agency information or input to be gained.
The Environmental risk assessment will include attention to some of the following focus areas of exposure:
- Looking at where the exposures are: is there a watercourse nearby?
- Are you close to third party property?
- Are there any footpaths nearby?
- Is there a disaster recovery plan, including a spill response strategy, in place?
- How quickly can the Environmental Agency, experts and specialists be mobilised where necessary?
- Developing a management plan for the days, weeks and months following an incident.
Environmental liability exposures are often hidden, surprising and catastrophic. A wide range of pollution exposures could shut down your business, cause damage to third parties, and expensive and time-consuming clean-up costs. Pollution claims, resultant damage, and clean-up costs associated with an environmental incident are typically excluded from general liability policies
If your business was held responsible for contaminating the environment, you could face large, unexpected expenses.
Despite the best environmental management plans and strategies, accidents do occur.
General Liability policies can be extended to include sudden and accidental pollution coverage. Standard public liability policies typically limit cover to third-party bodily injuries or property damage from pollution caused by a single, sudden and accidental incident, and they usually do not cover pollution from expected or gradual causes.
It will however be well worth the time and effort to develop a tailored environmental risk liability insurance solution!
Environmental policies protect against pollution exposures at your premises, at adjacent third-party premises, or at locations where you conduct business.
Examples of Exposure
- Exposures might include spills or leaks from underground or above ground tanks on your site.
- You would look to cover the clean-up costs on your own site and leaks to your neighbour’s site.
- Coverage is also available for construction contractors who perform work on third party premises where they may be in jeopardy of causing an environmental incident. This is referred to as contractor’s pollution insurance.
For businesses that have a high rate of pollution potential, there may be bespoke cover available. This can include policies for:
- Environmental contractors
- Industrial site redevelopment
- Professional indemnity for environmental consultants
- Landfill sites
- Radioactive contamination etc
Environmental liability insurance may differ from insurer to insurer. Do your research, discuss your specific needs with experienced consultants and ensure that your policy fits your business’ needs and keeps you compliant with the latest, most stringent regulations.
