By Richard Davies
BHIB Insurance Brokers
THROUGH our own economic and technological development, we have significantly increased the stress we put on our natural resources and environment.
From the felling of rainforests, overfishing and to the increase in our energy consumption patterns, today’s society must reconcile its need for economic growth with the necessity to minimise the risk of environmental damage.
Environmental risk assessments offer a proactive appraisal that balances society’s needs with the potential risks to the environment. Once assessed it is necessary to manage any risks by formulating procedures and policies that can be adopted and clearly communicated.
But what if something goes wrong, what happens if you suffer a fire or another major incident that causes harm to the environment?
Experience suggests that business owners will often seek guidance from their insurance brokers and hope that their current insurance policies will provide the cover they require. Case law suggests that this isn’t always the case – (Bartoline Limited (Bartoline) v (1) Royal & Sun Alliance Insurance plc (RSA) (2) Heath Lambert Limited (2006) – and costs can not only be significant to the balance sheet but also to the reputation with both customers, suppliers and the local community.
Where the insurance industry and brokers can assist is in offering business owners an Environmental Insurance policy, that typically provides cover for the following;
* Losses arising from on-site and off-site statutory clean-up costs
* Third party property damage (including loss of use and diminution in value of third party property) and bodily injury
* Biodiversity damage liability under the Environmental Liability Directive
* Associated legal defence costs.
If Corporate Social Responsibility is at the heart of your business then give careful consideration to a review of your current insurance policies to discover how they would react should something go wrong.
To learn more, contact Richard Davies at BHIB Insurance Brokers, email or call 01604 258713.