Your business needs to be in the know about the Environmental Impairment Liability Insurance.

By Faeza
19 June 2015

There is a great risk which businesses need to face up to with the new environmental regulations and increasing public awareness of environmental issues. This is called Environmental Impairment Liability Insurance. The risks are in terms of impact to balance sheet, the reputation of the company and employees or owners of the company could be jailed.

Here is a number of environmental damage and pollution possibilities coupled with risk management strategies that can help protect your business.

  • Your company acquires property to expand its operations. During construction, contamination from a previous use of the site is discovered.

  • Your construction falls way behind schedule while you negotiate with regulatory authorities to find a solution.

  • Your company receives a complaint from residents in the community alleging that you have caused contamination resulting in bodily injury and property damage. You must mount an expensive defence, even though it is likely that the contamination migrated through your property from an adjoining industrial facility.

Your company has a sudden, on-site release that, despite your efforts, has caused the evacuation of nearby residents and impacted neighbouring wetlands.

  • Corporate and Business Insurance Regional Manager at Standard Bank, Gerald Juma advises on it: “Clients need to be aware of their exposure and what insurance will pay for to ensure there are no nasty surprises and it is imperative to understand the cover you are paying for. Generally this insurance could cover as much as 85% of the debtors’ book.” says Mr Juma.