Liability insurance

Insurance against pollution damages

Most public liability policies include pollution liability as standard, which covers damages paid to a third-party who has suffered as a result of pollution caused by your business activities.

Pollution liability as part of public liability insurance covers sudden and unexpected incidents that take place during the insured period, such as one-off accidents.

If your business operates in an industry where there is a higher risk of pollution during everyday operations, eg the oil industry, you may want to opt for a bespoke policy such as environmental impairment liability. This can be designed specifically for your industry sector or even your particular business.

Environmental impairment liability should cover:

• clean-up costs from any creeping pollution
• damages awarded for injury to people or property
• the cost of investigating and defending the company against such claims

The Environment Agency is responsible for regulating businesses in these circumstances. Read about how the Environment Agency regulates businesses on the Environment Agency website - Opens in a new window. 

Talk to your insurance broker to find out if such specialist protection would be a good idea for your business.

Subjects covered in this guide

• Introduction
• How liability insurance works
• Employers' liability insurance
• Public liability insurance
• Product liability insurance
• Insurance against pollution damages
• Property owners' liability insurance
• Professional indemnity insurance
• Directors' and officers' liability
• Seek specialist advice
• Here's how I checked what insurance I need

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