Environmental Protection Liability Insurance


The environment is acquiring economic value and corporates for the first time bear the cost of preventing environmental damage as well as the cost of restoring environmental damage (pollution). Thus, the Environmental Protection Liability Insurance is mandatory for corporates.

“Full responsibility and the polluter pays” are two terms that we often find in corporate environmental liability insurance.

According to community directive 2004/35/EK ‘the polluter pays’, every business that causes environmental pollution or puts the environment in danger of pollution, will have to take the necessary measures to prevent or restore the damage.

As damage to the environment is considered:
• Any damage to the soil – subsoil, which can pose a serious risk to human health
• Damages to protected species and natural habitats which will negatively affect their preservation
• Any damage affecting the environmental status of water resources as defined by the EU and the Marine Environment Strategy Directive

Who may need Environmental Protection Liability Insurance: 

  • In energy industries
  • Industries (mineral ores, chemicals, plastics, metal, aluminum, batteries, wood processing, textiles)
  • Hazardous waste management companies
  • Recycling companies
  • Large-scale pulp, paper and board production industries
  • Large scale meat, dairy and food production industries
  • Livestock farms – companies selling agricultural products / fertilizers
  • Commercial enterprises (clinics, hospitals, medical laboratories, commercial centers, commercial real estate companies)
  • Construction companies
  • Hotel units located near areas with protected species and natural habitats (Natura)
  • Textile dyers and tanneries

What is covered under the environmental protection insurance:

  • Defence costs for investigating and settling claims
  • Costs to prevent and mitigate the effects of pollution or environmental damage
  • Damage caused by a sudden or gradual pollution incident
  • Cleaning costs for facilities (own & third parties)
  • Physical damage and property damage caused by pollution
  • Restoration of biodiversity
  • Costs of discontinuation of works due to pollution
  • Environmental damage caused during the transport of products / waste
  • Environmental damage caused by the duration of construction works
  • Possibility to cover environmental degradation without pollution conditions