Insurance products: Standard policies

At present, environmental damage is covered by a variety of insurance products. Basically, there are the following types of policy:

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  Standard policies in liability and property insurance, which, however, cover only a part of the environmental risk
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  Special environmental policies, which offer policyholders a broader scope of cover.

In many markets, public liability policies cover sudden and accidental environmental damage, with first-party losses usually being excluded. Environmental damage caused by products is covered under public liability as well.

Professional indemnity insurance also frequently covers environmental damage. For example, planning offices involved in the construction of chemical plants take out professional indemnity insurance covering environmental damage resulting from planning errors.

Motor policies cover environmental damage caused by the operation of a vehicle. Even fire insurance may include property remediation as a result of fire, either in full or with a sublimit. All of these policies cover environment-related damage to individuals and property only and, in a few cases, also pure financial losses.

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