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What is environmental insurance?

Environmental insurance is a risk transfer solution to indemnify the insured against losses arising as a result of potential environmental Liabilities. The insured for property based Coverage can be the buyer or seller of a property, or often both.

A separate environmental insurance policy is often required because public liability insurance typically excludes environmental liabilities with the exception of sudden, unintended and unexpected pollution incidents.

In addition, public liability insurance will only provide cover for third party damages, and not for the remediation of the property of the insured.

Insurance policies are available to provide cover for a variety of potential losses arising from environmental liabilities including:

1. •

   on-site remediation

2. •

   off-site remediation

3. •

   civil disputes, and

4. •

   legal expenses

Role of insurance

Obtaining insurance may enable transactions or developments to proceed where there are environmental risks and liabilities as it provides financial security and removes uncertainty. It places the risk of liability with a suitable third party carrier.

Insurance can also be used to assist operators of high hazard facilities