Environmental Impairment Liability

Tightening legislation and public scrutiny around the detrimental impact that business continues to have on the environment has made it imperative for organisations to have Environmental Impairment Liability insurance.

Environmental Liability insurance protects the company and its Directors and Officers if they are found liable for breaching environmental laws, causing harm to surroundings.

Environmental Liability Insurance has been developed as a solution to protect your business from this emerging risk.

Environmental Liability provides a range of covers largely not included under General Liability policies.

  • Coverage for gradual as well as sudden and accidental pollution conditions
  • Coverage for historic conditions and operational exposures
  • On site clean-up of pollution conditions

We aim to deliver an insurance solution that allows you to plan for the future of your business with greater certainty. We want to be a partner in your success.

Please Note: Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer-specific policy wording for inclusions, exclusions, terms and conditions.

Covered Features

Business Disruption

Cover disruption to property owner and adjoining business.

Natural Resource Damage

Provides cover against both sudden and/or gradual events causing pollution damage to natural land, air and or water resources.

3rd Party Liability

Covers Pollution related Bodily Injury and Property Damage claims arising from third parties.


Clean up Costs & Expenses

Covers clean-up costs to own site and third party premises, as well as additional expenses associated with pollution related events.

Fines & Penalties

Covers Statutory fines and penalties imposed by government regulatory bodies.

Premises & Contractors

Covers a broad range of pollution liability protection for owners & renters of a premises for both first party & third party environmental liability as well as for contractors and sub-contractors while performing operations at a job site.



Phillip de Sousa

Environmental Impairment Liability


An Environmental Impairment Liability insurance policy extends to provide cover for the following things such as: gradual events, first party clean-up of contaminated land, civil fines & regulatory clean-up costs, contractual liability, emergency costs, diminution in land value

These things are not covered in a standard broad form Public Liability Insurance policy. 

Any business that owns or rents land is exposed to environmental liability, as there is no way of knowing what took place on the property prior to your occupancy.

Recent legislative changes mean that local authorities such as the EPA have greater authority in issuing fines and penalties to both Companies and Individuals.  Legal fees can quickly escalate in order to defend yourself, irrespective of whether you know of the pollutants or not.

The statistics show that the majority of claims are made by small to medium companies, where practices are generally less regulated. While larger companies are able to absorb these unplanned catastrophes, it is often smaller companies that suffer the greatest financial impact.

With Environmental Impairment Liability insurance is becoming more readily available in Australia, insurer underwriting processes have been stream-lined to make obtaining a quote much simpler.

More than ever before, Environmental Impairment Liability is more affordable for both small and large organisations.

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