Environmental liability poses a serious financial risk to businesses throughout Europe. Although growing public environmental awareness and the compliance of Greek legislation with European Directive 2004/35/EC (Presidential Decree 148) have increased interest in environmental liability insurance for businesses, standard civil liability insurance cannot fully meet their needs, as they exempt gradual pollution and biodiversity damage.
Who is environmental liability insurance aimed at?
At businesses that are exposed to environmental risks. It provides coverage with respect to the remediation of environmental pollution damage caused by their operations and the prevention of risks such as:
- Plastics and metal industry, chemicals, detergents, fertilizers, aluminum - Battery manufacturers - Wood processing
- Power generation industries
- Companies that use, store or process chemicals (e.g. paints, inks, adhesives, detergents, cosmetics, pharmaceuticals)
- Agricultural and Livestock Holdings - Breeding farms - Companies that sell agricultural products - Companies that produce and sell fertilizers
- Waste management companies (e.g. hospital waste, used mineral oils, etc.)
- Recycling companies (e.g. vehicles, electric accumulators, etc.)
- Multinational companies – Coverage policies for overseas facilities
- Hotels, hospitals, shopping centers
- Contractors for public and private projects - Construction companies
Under the new liability framework, an environmental liability policy may provide coverage for:
- Damage to the environment due to pollution caused by the insured.
- Damage to third parties due to pollution caused by the insured.
- The insured's own damage caused by pollution.
- Bodily injury, property damage and financial loss suffered by third parties as a result of pollution caused by the insured.
- Costs of providing legal assistance to the Insured.
- Emergency costs to prevent and/or limit pollution damage, even if it has not yet occurred.
