Special policies: cover damage to the environment

There are special policies which cover damage to the environment itself, i.e. to water, land, flora or fauna. In contrast to the narrow scope of the standard covers, these policies offer substantially more:

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  Environmental liability insurances cover the costs of environmental damage to third parties due to sudden and accidental losses. In addition, they cover most environmental pollution attributable to the gradual and unintended release of substances. In some cases, they also insure environmental damage due to operational and officially authorised emissions.
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  Clean-up policies, usually restricted to hazardous incidents, cover the costs of soil pollution and, to a lesser extent, water damage on the policyholder's property.
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  Mandatory insurance for the disposal of waste is often officially prescribed by the authorities.
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  Special professional indemnity policies insure companies that provide services in the environmental sector. This is in fact one of the principal business activities of specialist environmental insurers in the USA.
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  Historical pollution insurances cover damage from unknown soil or groundwater pollution.
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  Clean-up cost cap policies cover cost overruns in connection with the remediation of historical pollution.
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  Stand-alone covers are based on special liability standards. In Germany, for example, policies are currently being developed which will also cover damage to the environment itself. The new EC environmental liability directive has made such covers necessary.

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