Speak directly to our team
01603 218000
Environmental Impairment Liability Insurance
Environmental impairment liability insurance (EIL) provides cover for the legal, clean-up, and reinstatement costs following a pollution incident. Although it doesn’t cover fines, it can cover third-party costs for damage to neighbouring land, and potentially compensation for any loss of business suffered as a result.
EIL insurance provides protection for a range of environmental impacts:
- Soil, air, and water pollution
- Offensive odour
- Oil storage pollution
- Noise pollution
- Damage to natural resources
- Fly-tipping on your property
- Third-party damage
The Alan Boswell Group Difference
Environmental Impairment Insurance is often included in a standard farm insurance policy, but it is not a unique risk to farms. Any business that stores or uses potential pollutants should consider maintaining EIL cover.
Alan Boswell Group are experts in EIL insurance, helping you understand your exposures and providing the right cover to offer you the most appropriate protection.
How our customers rate us
Spot on with communication and assistance.
EIL Insurance in detail
Since changes to the Environmental Protection Act in 1990, any damage caused to the environment is the liability of the polluter. This is the ‘polluter pays‘ principle. Where multiple parties are involved in a project, every party has a duty of care to ensure that their business activities do not cause environmental damage.
And, while public liability insurance still covers for pollution caused by a sudden, identifiable, unintended, and unexpected incident, this can leave you unwittingly exposed as environmental damage can often happen gradually over a period of weeks, months, or even years.
Environmental impairment liability insurance (EIL) is designed to cover the cost of any clean up and / or third-party claims and includes:
- Legal defence
- Environmental clean-ups
- Reversal of damage to biodiversity
- Compensation to third-parties for bodily injury or loss of business
- Repair of third-party property
EIL insurance is the most comprehensive policy available for businesses to protect themselves against the cost of claims for pollution.
FAQs
-
Environmental liability insurance is not a legal requirement but does provide peace of mind if you operate a business in an industry that is at high risk of causing contamination or pollution. Some insurers will include EIL as part of a farm insurance policy for businesses working in the agriculture sector.
-
As with most insurances there is no legal requirement to hold EIL cover and people can choose to self-insure. However, land owners and businesses are liable for flora and fauna damage in the event of a pollution incident. If cover is not in place the Environment Agency will use their statutory powers to clean up and will charge the landowner under the ‘polluter pays’ principle.
-
Environmental impairment liability insurance is designed to cover the clean up costs of your land but not the property and this will usually be covered under your buildings insurance or farm policy. Third-party property and land is covered.
-
Any previous pollution will be excluded. However, if it has been cleared away by professionals then cover could be sought. It will, of course, be dependent on what happened and any remedial work undertaken. Insurers will review each situation individually. An insurance broker can help you present these in the most beneficial way.
-
Underwriters will need to know various details regarding the risk, including any history of incidents that could give rise to a loss, your business description, details of any storage tanks and anything else that may affect your exposure to a pollution event. Your broker will work with you to gather and present the necessary information.
-
Absolutely. While many farm insurance policies will include EIL cover as standard, EIL cover can be purchased for any industry or business which bears risk of a pollution incident.
-
Yes, environmental liability insurance provides cover for environmental damage. Standalone policies have a limit of indemnity of up to £5million, while our farm insurance includes a limit of £2million.
Get in touch
Related Products
Renewable Energy Insurance
Provides cover for your renewable energy projects from planning to operational includes contract works, business interruption, property damage, machinery breakdown and liabilities.
Latest News
What is Environmental Impairment Liability cover?
What is Environmental Impairment Liability (EIL) insurance and what environmental legislation do business owners need to be aware of?
Pollution liability cover and contractors
In this article we look at environmental liability and the insurance available to protect businesses from the cost of pollution clean-up and legal defences.
Agritech: The oldest industry meets the latest technology
What is agritech? Is it sustainable? Is it profitable? Find out how modern technology is driving a major agricultural revolution.
Farming concerns in 2016
We take a look at the challenges facing farmers across the UK this year, from falling prices to government restrictions and how you can protect against them.
How to protect your farm from rural crime
Organised criminal gangs continue to target people who work in the countryside. We look at the steps you can take to protect your farm and minimise the risk of becoming a victim of rural crime.
The risks and insurance you need to know about when setting up a farm shop
There are currently around 4,000 farm shops dotted around the country. Here, we take a look at the risks involved and the different types of insurance you’ll need.
Top Farm diversification ideas
Last year 68% of farms had chosen to diversify. We look at some the ways farmers are diversifying and the possible profits behind those ideas.
Why hail damage insurance is vital to UK farming
Join us as we explore the importance of hail damage insurance for farms.
Guide to contaminated land
If you own or use land, it’s important to protect it against contamination. But what is contaminated land – and who is responsible for clearing it up?
Related news
Comprehensive guide to care home insurance: protecting your business
If you own or manage a care home, ensure you have all your insurance liabilities covered with our comprehensive guide.
Indemnity periods in business interruption insurance – what do you need to know?
What is a business interruption indemnity period and how do you calculate it? Read our step-by-step guide.
Management Liability - Protect your people
Following the launch of our new management liability scheme, Kate Rhodes explains what it is, the cover it provides and the benefits to your employees
Understanding the liabilities of a company director
Directors have a legal duty of care to the business and, while a limited liability company offers some protection, there remains the possibility of being personally sued. Find out the many liabilities of being a company director.
What is Corporate Legal Liability (CLL) insurance?
Corporate legal liability covers the cost of defending a business if a claim is made against it. Here’s how it works and why it’s so important.
What is an insurance broker? All your questions answered
The role of an insurance broker, how to benefit from their expertise, and how to choose a broker that’s right for you.
What is directors and officers insurance?
We answer your key questions about directors and officers (D&O) insurance.