There are three key environmental liability policies in corporate and land transactions – indemnity policies, site pollution legal liability policies and contractor pollution liability policies.
- Indemnity policies
- Used principally for high risk desktop reports
- Responds if a regulator threatens to serve a remediation notice
- Covers remediation costs, legal fees and loss of property value
- Exclusions for civil claims, storage tanks
- Policy period 15 – 25 years
- Site Pollution legal liability (SPL) policies
- Comprehensive protection for onsite and offsite contamination
a) Regulatory action
b) Third party claims
c) Environmental damage
d) Contractual liabilities - Exclusions for phase 2s and no onsite cover during remediation
- Some insurers will exclude high risk known issues
- Policy period can be 5 or 10 years
- Contractors Pollution Liability (CPL) policies
- Remediation or construction disturbs existing contaminants
- Policy period 3 to 7 years
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