Also know as environmental risk insurance, environmental liability insurance, pollution liability insurance and environmental impairment liability insurance Terminology is confusing with insurance companies using these terms interchangeably Not Professional Indemnity insurance used by consultants
Standard business liability insurance often excludes loss caused by pollution and environmental damage, or only provides cover in limited circumstances. A policy with EPI cover can help fill this gap.
If a general liability policy provides any cover at all, it is often limited to third-party claims for off-site damage to property and bodily harm from sudden and accidental escape of pollution. This may not cover, for example:
the costs of complying with a clean-up order by a regulator on-site damage to your own property environmental clean-up of other peoples properties decontamination of your property following a fire, flood or storm damage caused by contaminated run-off or escape following an on-site fire loss or damage associated with gradual pollution events, such as groundwater contamination caused by pipeline leakage or underground storage tanks cost of collection, transport, treatment or disposal of contaminated fire water.
Thanks to XL Andrew Hookings for this one
Our broker advised us not to disclose the location of this policy (its that good!) Thought the underwriter may get nervous. This particular policy covered known and unknown pre-existing conditions.
Bit of a mystery. Insurance Council of Australia is no help at all.
NSW EPA recommends:
Speak to your insurer or broker. While EPI cover is widely available in some other countries it is still relatively new to Australia. As a result, not all insurance companies will offer it and not all brokers will be aware of it.
Marsh and AON really the only insurance companies with capacity in this area.
Environmental Insurance - Gregor Riese - ALGA Oct 2015
Property & Risk Manager
Environmental Pollution Insurance
– property owners and business
Other related insurances:
• Contractors Pollution Liability –
companies working on third party sites
• Professional Indemnity Insurance – for
Designed to deal with pollution and
environment legislation is changing
cleanup costs are more onerous and
existing policies may give you no
Existing general insurance products:
- General Liability Policies
- Industrial Special Risk
You are not covered for a whole range
of bad things that can happen*
Case studies highlighting exclusions
NO NO NO NO NO NO NO
Environmental YES YES YES YES YES (not as
YES YES (not
Australian Environment Business Network
Who should consider having EPI cover?
Any business that uses or stores non-trivial
amounts of chemicals or hazardous materials that
could damage the environment or affect other
people’s property should consider EPI cover as they
run the risk of causing a pollution incident and
incurring associated liabilities.