Posted on Jan 04, 2022
World leaders have struck a new climate change deal – the Glasgow Climate Pact – after the two-week COP26 summit in Glasgow in October and November. It is the first ever climate deal to explicitly state that the the use of coal (which has been deemed the worst fossil fuel for emitting greenhouse gases) will be limited, or “phased down”.
With a heavy focus on environmental issues and increasing regulations, businesses need to be more mindful than ever. What you may not be aware of is that not all pollution events are fully covered by standard insurance products. We’ve teamed up with RSA to highlight some of the key misconceptions about Environmental Insurance.
Myth 1: “All Public Liability Insurance includes environmental cover.”
Unfortunately, this is a myth. In reality, pollution cover under in Public Liability Insurance doesn’t provide adequate protection for all pollution incidents.
Covers not provided under a standard Public Liability policy include:
Gradual pollution
Not all pollution events are ‘sudden and accidental’ or ‘catastrophic’. Pollution events are just as likely to happen as a result of gradual pollution.
Statutory Liability
Work that is carried out at the request of an environmental regulator or debts incurred for work undertaken by regulator on your behalf wouldn’t be covered under a standard policy.
Own site clean-up
Own site clean-up from a pollution event is not covered under Public Liability Insurance. Meanwhile, it is estimated that 70% of claims paid under environmental policies are for own site clean-up.
Environmental damage
Much of the UK’s flora and fauna is not ‘owned’ by a private entity. Government authorities are charged with protecting the ‘non-owned’ environment. Therefore, environmental damage to ‘non-owned’ flora and fauna would not trigger a Public Liability policy.
Historic pollution
Under UK law, a land occupier or owner can be held liable for pollution on their site that they didn’t cause, even if it happened years ago. However, historic pollution is not covered by a Public Liability policy.
Myth 2: “We are not a polluter.”
It’s a common misconception that Environmental Liability is only for heavy engineering, chemical and manufacturing activities. You may not see your business as a potential polluter; however, environmental damage can be caused from the most unlikely pollutants. Water can become a pollutant when it is discharged into a river at high temperatures or laden with silt. Milk and alcohol spills can degrade the quality of surface water, causing fish to die.
The Environment Agency says around 57% of serious incidents that have been recorded were from so called ‘low risk’ trades. These sectors include light engineering, warehouses, retail outlets and commercial offices.
Myth 3: “The polluter pays.”
Many businesses rely on the fact that under UK law the polluter is the one that pays for historic pollution. However, this is not always the best approach, as problems can arise when:
Myth 4: “Insurers only provide Environmental Insurance to low risk businesses.”
This one is false. Environmental Insurance can be taken out by businesses undertaking a wide range of activities, including commercial properties, product assembly, storage and distribution, manufacturing and chemical storage.
Myth 5: “You need a survey first.”
The streamlining of the underwriting process means that surveys are not always required; often policies are placed on existing information held by a business and/or once the application form has been completed.
Myth 6: “Environmental Insurance is too expensive.”
By working with our panel of insurers we’re able to provide environmental cover at competitive prices. As well as policies that cover clean-up costs and third-party damages, your business can benefit from emergency response and legal and technical support to manage short and long-term exposure.
As your broker, we can source bespoke cover that meets your business’ requirements. To talk through your Environmental Insurance needs, get in touch with our friendly team today. Call us today on 02920 626 226 or email insurance@watkindavies.com
"Very efficient, always friendly and helpful. I have used Watkin Davies for years, and they have always been competitive. I received great support recently when I had to make a claim, so I'd highly recommend them."
"I was very impressed with the quality of the service - it was outstanding. The advisor, Ms Spear went above and beyond to give me the best driving insurance policy. The policy I have received is exactly what I was looking for. Thank you so much Ms Spear!"
"I've used Instructorcover Plus for my driving instructor insurance for a number of years. Not only are prices competitive, even at renewal, but customer service is fantastic. Call operators are always cheerful and incredibly helpful. Everything is always sorted in a single call, saving valuable time. Highly recommend."
"Absolutely superb service from the team, particularly Natalie. Very easy and simple process"
"As aways very efficient"
"I have used InstructorcoverPlus for my driving tuition insurance for a number of years. Their prices are always competitive and everyone I speak to is friendly and helpful."
"Ceri was very helpful and knowledgeable on the phone"
"Karrie Brewer was so helpful today, especially as one insurance company would not quote, so had to shop around for us, many thanks"
"Kelly is amazing. Very helpful and friendly, did a great job today with helping me out to get insured. Amazing service!"
"Great service. Got my first driving instructor insurance with this firm. Price was competitive and customer service provided by Jane was great. I will definitely recommend the service."
"Team were very helpful when it came time to renew my policy, taking the time to check and make any amendments needed. Would highly recommend."
"5 stars!"
"Excellent service from Watkin Davies as per usual. I love the way they do all the hard work researching best quotes and provide you with your options. All the staff are very friendly and professional, I have to highlight Ceri who always does a fantastic job for me and my family."
"Really helpful and efficient customer service, friendly and knowledgeable too. I would highly recommend InstructorcoverPlus."
"I m a returning customer and what a wonderful experience. Emma is new to her role but she was very helpful and polite throughout. She got the quote done very quickly and managed to beat all my other quotations. I therefore didn't have to waste any more time. Further she offered me three instalments at 0% which is helpful in this current economic climate. The paperwork was sent straight away. Highly recommended."
"Once again, could not have been more helpful! Still a pleasure to speak to a 'real person' who knew what they were talking about!"