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A question we were asked recently at Prizm is whether standard public liability insurance extends to environmental liability, or if a separate environmental liability insurance policy is necessary?
Public liability insurance primarily covers claims arising from third-party injuries or property damage due to business activities. For instance, if a customer slips on a wet floor or your equipment damages someone else's property, then that’s when public liability insurance steps in.
Whilst environmental liability insurance is a type of public liability insurance, is specifically encompasses a range of risks such as pollution, contamination and harm to natural resources. These environmental risks are not limited to industries like manufacturing or waste management, as even businesses like dry cleaners or petrol stations or agricultural operations can inadvertently cause environmental harm.
Standard public liability policies often exclude pollution-related incidents unless they result from sudden and accidental events. However, a significant source of environmental claims are about gradual pollution, which is not usually covered.
Given the specialised nature of environmental risks, purchasing a separate environmental liability insurance policy may be worthwhile if you have a business that could be exposed to environmental risks.
Specialist environmental policies are tailored to address both sudden and gradual pollution events, plus cleanup costs and third-party claims for environmental damage. Some policies even cover regulatory fines and legal costs, giving all-round protection against what could result in devastating financial losses in the event of an incident.
If you’re not sure whether you need separate environmental protection, just give the experienced team at Prizm Solutions a call. We’ll find out more about your business in order to be able to best advise you on the cover you need.
We can help with many other types of business insurance too, including legal expenses insurance, engineering inspection insurance and much, much more…
Just contact us, we’re always happy to help.
