As a business, you will face various scenarios in which your business activities may cause environmental damage. For example, damage caused by: 

• Your property’s current land use or the historical use of the site 

• A malfunction of holding tanks on your property e.g. an oil tank  

• A product your business is transporting e.g. pesticides 

• Fire on your property e.g. of composting green waste 

• Poorly operating drains causing run-off of oil in water supply e.g. in a car park 

• Dust arising from construction work 

Moreover, recent UK and EU legislation has significantly increased the potential costs of remediating damage caused. Environmental issues need to be dealt with rapidly to protect the reputation of your business.

Environmental liability insurance covers the cost of repairing environmental damage arising from both common law claims, and claims arising from UK and EU legislation.  In particular, it provides cover for: 

• Both sudden pollution and gradual pollution  

• First party (own site) clean-up costs imposed by regulatory authorities 

• Third party liability including impact on property value 

• Nuisance claims 

• Legal costs and expenses 

You can buy environmental liability insurance directly from an insurer or from a specialist broker through the

British Insurance Brokers’ Association (BIBA).