Environmental Liability Insurance

Environmental liability insurance provides insurance coverage in connection with applicable laws on environmental liability in the prevention and remedy of environmental damage. The insurance covers damage and related costs incurred by the insured in connection with the occurrence or imminent threat of environmental damage in connection with the insured activity or product of the insured.

Environmental damage is considered to be:

• damage to protected species and protected habitats which has serious adverse effects on achieving or maintaining a favorable conservation status of protected species and protected habitats
• damage to water which has serious adverse effects on the ecological, chemical or quantitative status of waters or on the ecological potential of waters
• soil damage consisting in soil pollution presenting a serious risk of adverse effects on health due to direct or indirect introduction of substances, preparations, organisms or microorganisms on, into or under the surface

Scope of insurance

Environmental liability insurance covers the costs of:

• preventive measures - are adopted and implemented to avert the imminent threat of environmental damage, the purpose of which is to prevent or minimize environmental damage
• mitigation measures - the costs of appropriate and urgent measures taken to mitigate the consequences of the emerging environmental damage, to mitigate adverse health effects or to prevent further deterioration of natural resources
• corrective measures - to eliminate or remedy environmental damage, the purpose of which is to renew, regenerate or replace damaged natural resources. They consist of primary remedy, auxiliary remedy or compensation remedy.
• technical costs – the costs of legal services, expert opinion, emergency commissioners, environmental consultants or experts incurred in connection with environmental damage
• damage to property due to environmental damage
• damage to health due to environmental damage
• costs of legal defense