Our Insurance Comparison Tool allows you to pick the Environmental policy that's right for you by comparing every plan offered by Canada's leading insurance providers. Stuck? Our Frequently Asked Questions can help you learn more about this coverage area.
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Frequently Asked Questions(click to expand)
What Is Environmental Liability Insurance?
Environmental Liability insurance is also known as Environmental Impairment Liability (EIL) insurance or Pollution Legal Liability. A specific type of Environmental Liability called Contractors Pollution Liability (CPL) is primarily concerned with pollution caused during contracting operations performed by or on behalf of a contractor.
As pollution is often found as an exclusion in many insurance policies, a specific Environmental Liability product is able to fill in the gaps that most other products do not cover.
Who Needs Environmental Liability Insurance?
Businesses such as portfolio owners, property developers, manufacturers, hospitals or educational establishments may find themselves as the source of contamination due to spills caused by sewage, oils, fuels or organic materials. Not only are they liable for the damage caused by their pollutants but also the remediation costs involved in a cleanup operation. A company can still be liable for contamination events caused by work done by a hired contractor.
Businesses with no operational processes, particularly landowners and property management companies, must also be aware of the environmental liabilities they could assume from the activities of their tenants and neighbours, as well as from any industrial processes that took place at the site in the past.
Contractors working on a building or project are particularly at risk if they do not take out an ELI policy. The chance of harm caused to the environment is particularly higher, especially when due to negligence. Incidents such as the transportation of harmful materials, handling of asbestos, toxic spills or soilage of water tanks are more likely to occur during contracting works, therefore increasing the chances of risk.
What Does Environmental Liability Insurance Cover?
- sudden or gradual pollution
- cleanup costs
- bodily injury
- property or third party damage
- legal costs and expenses
Depending on the scope of the coverage, some Environmental Liability insurance policies may also include other optional risks, including:
- non-owned waste disposal sites
- transportation of hazardous materials
- reputational damage
- business interruption
What Is Not Included In Environmental Liability Insurance?
- non-compliance with Environmental Laws
- prior knowledge of pollution conditions
- abandoned properties
- deliberate dumping
How Much Does Environmental Liability Insurance Cost?
Depending on the size of the company, the materials handled and the potential effects they have on the surrounding habitat will determine the amount of coverage required. Any previous incidents will affect the premium rate as well as any historical factors of the area.