Do you know how important environmental liability insurance is? Did you know that it is compulsory by law to insure some business activities ? Do you know how large the fines are for environmental pollution and how in some cases a prison sentence can be imposed?
What is environmental liability insurance and why is it needed?
The European legulations, whose role is attributing environmental responsibility, is based on the ‘polluter pays’ principle and so, when it comes to preventing and restoring environmental damage, the responsibility lies solely with the culprit. With the environmental liability insurance, the company will be able to ensure the necessary funds, so that if found guilty and environmental responsibility is imputed, it can continue business freely.
It is very important to have an environmental liability insurance as in addition to the restoration of the environmental damage, financial and criminal penalties are imposed such as: a fine of 500 to 2,000,000 euros, interruption or closure of a business and/or imprisonment from 2 to 10 years.
For whom is insurance compulsory?
Since 2006, under article 57 para. 1. (c) 2. Law 4042/2012, for the licensing of companies that either manage hazardous waste or have a permit for the collection – transport of hazardous waste, insurance that provides financial guarantees is mandatory.
What are the covers offered by environmental liability insurance?
- Cover of environmental restoration costs for damage to soil, water and protected species as well as to natural habitats, resulting from a sudden or gradual accident, for which restoration responsibility has been attributed by the competent authorities.
- Cover of costs to limiting environmental damage.
- Cover of the costs of the preparation of the studies and proposals required by the legislation for the restoration of the environmental damage.
- Cover of civil liability to third parties for the restoration of material damages.
- Cover of specialized legal support costs.
- Cost of cleaning facilities (own or third parties).
- Bodily injury and property damage caused by pollution conditions.
Additional covers and services:
- Cover of expenses for the restoration of damages to the property of the insured company due to environmental damage, combined with the offered property insurance.
- Integrated consulting services of technical consultant and specialized environmental inspections.
- Costs of interruption of work due to pollution conditions.
What are the cover limits?
Category 1: € 3.000.000 and above (integrated coverage of a large industrial unit)
Category 2: € 1,000,000 to € 3,000,000 (integrated coverage of medium industrial unit)
Category 3: € 100.000 (integrated coverage of commercial or craft unit)
Category 4: € 250,000 to € 3,000,000 (mandatory waste management coverage under the licensing legislation)
Which companies do the environmental liability insurance apply to?
- Industries
– Chemicals, detergents, fertilizers
– Plastics
– Metal
– Aluminum
– Battery manufacturers
– Woodworking
– Paper-Pulp
– Textiles
– Food - Storage Facilities
- Waste Management Companies
- Construction Companies
- Commercial Enterprises
– Clinics/Hospitals/Health Units
– Shopping Malls
– Hotels
– Medical Laboratories
– Commercial real estate companies
– Printing - Agricultural-Livestock Farm
– Livestock Units
– Businesses selling Agricultural Products
– Fertilizer manufacturing/selling companies - Multinational Corporations
– Programs for the coverage of facilities abroad
*The limits and coverages are indicative. To find a contract that suits your requirements please contact us by clicking here.