Environmental Liability Insurance

Environmental Liability Insurance . What is it? It is an insurance product aimed at covering business liability related to environmental risks: pollution of water, air, land and all kind of biodiversity damages.

When does your business need environmental liability insurance ?

In a variety of scenarios and situations, such as malfunctioning of your installations (oil or waste water tank, for example), a dangerous or toxic product used or transported by the industry, poorly operated drains or air conditioning systems, etc. It can be gradual or sudden pollution.

The regulation is usually under a strict liability regime (the European Union, for example), and does not depend on an act of fault. The principle is that “the polluter pays”. In addition, they will have to face administrative, civil or penal law sanctions.

In addition, this type of liability is unlimited. It is mandatory to return the damaged natural resources to their original state, and bear the costs of preventive measures. It will usually include legal costs and expenses, clean up costs, and directors and officers liability for these actions, among others.


Typical business activities in which Environmental Liability Insurance is advisable include:

  • Combustion or gas – fired plants
  • Production and transformation of metals (metalworking)
  • Mining industries
  • Chemical industries
  • Waste management plants
  • Paper and cardboard industries
  • Textile industries
  • Leather industries
  • Food and agriculture industries, farming and animal husbandry
  • Use of organic solvents
  • Carbon industry
  • Gas stations