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Environmental liability insurance

Why do I need liability insurance for environmental pollution and damages associated with pollution? 

In most countries, companies that own or manage land, engage in buying and selling land, or engage in developing and financing real estate projects, are subject to various environmental liability risks even if they are not at fault. 

The basis of legal liability may be pre-existing site pollution (prior/historical pollution) or sudden and unforeseen environmental pollution as a result of production activities. Most general liability insurance contracts exclude loss resulting from gradual pollution (for example, damage caused by fuel storage tanks or filling stations leaking for a prolonged period) and historical contamination. 

The Russian market offers few options in the area of comprehensive liability insurance for environmental pollution. Local insurers usually only cover risks associated with sudden and unforeseen environmental pollution (for example, resulting from an explosion at an industrial site). Mandatory liability insurance policies for owners of hazardous industrial facilities specifically exclude risks associated with environmental damage. As a result, many businesses continue to bear the risk of liability for environmental harm and associated clean-up costs. 

Features and Benefits

AIG’s environmental liability insurance products are designed for stationary industrial, manufacturing and other facilities and can cover individual or portfolio sites. 

Insurance coverage extends to:

  • On and off-site clean up costs 
  • Third party bodily injury and property damage 
  • Loss resulting from gradual or sudden and unforeseen pollution / contamination 
  • Legal defense and expert costs 

Optional additional insurance can cover:

  • Unknown cases of pre-existing site contamination 
  • Business interruption 
  • Liability for environmental pollution resulting from the transportation of hazardous substances 
  • Leased sites 

The main advantages are:

  • Extensive coverage and flexibility 
  • Special insurance rules 
  • Long-term insurance contract (more than a year) 
  • Underwriting and claims expertise 
  • AIG’s financial stability 

Target market:

  • Production facilities 
  • Transport terminals and warehouses 
  • Brownfield redevelopers 
  • Sewerage treatment and waste disposal facilities 
  • Commercial real estate and housing 
  • Landowners 
  • Parties involved in mergers and acquisitions 

PIER Europe

Unmatched pollution incident and environmental response network delivering reliable and specialised support when businesses need it most    

Unmatched pollution incident and environmental response network delivering reliable and specialised support when businesses need it most.

How to report a pollution incident to PIER Europe*     

Call the PIER Europe hotline: +44 (0) 1273 400965    

available 24 hours a day, seven days a week, provide your contact information and a brief description of the incident

* Contacting the PIER Europe hotline does not constitute notice of a claim. You must still report your claim as detailed in your Environmental policy

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