Environmental Claims examples
Chubb Commercial Insurance

With an environmental liability policy you are insured for the clean-up costs of pollution incidents. In all the instances below, you will be covered with an environmental policy from Chubb.

Oil leak
A company was fined as oil was found to be leaking into a stream. The cause was corrosion of an underground pipe, arising from water from a collapsed field drain that hadn’t been checked for seven years. The incident cost the company £100,000 to clean-up the mess, a fine of £2,000 and costs of £1,245.
Clean-up costs: £100,000

Water pollution

A massive fire at a chemicals packaging site led to a serious water pollution incident after contaminated firewater entered a local warehouse. During the blaze, people within a 100 metre radius were evacuated due to the thick acrid smoke. The fire was put out with foam and water – contaminated water entered the local water course that fed into the main river. The clean-up costs of £500,000 would not have been covered under a normal public liability as most policies exclude demands by regulators to pay for clean-up and, a property policy would not have covered cleaning up the site where contamination occurred.
Clean-up costs: £500,000

Major spillages

A company was fined £15,000 and paid £1,530 costs following a major spillage of diesel that threatened a local water supply borehole. The spillage occurred on the company’s site due to a leak on a fuel pipeline between a 4,000 litre storage tank and an associated generator – oil had contaminated the underlying groundwater.  The company spent in excess of £1,200,000 cleaning up the contaminated soil and groundwater. Only specific environmental policies would cover you against a loss like this.
Clean-up costs: £1,200,000

Chemical fire and no insurance protection

A chemical company had a massive fire on their premises which were totally destroyed.  During the course of the fire, water used for fire fighting became contaminated and entered a nearby river.  The Environmental Agency undertook emergency work and claimed their costs from the chemical company, who they also required to undertake additional remedial works on another river.  They had a public liability policy and the total costs were in the region of £800,000, but when a claim was put in to their insurers it was denied.  The insurer’s position was upheld in court.  It is likely that in a similar event where the insured had the benefit of a pollution policy, their liabilities would have been covered.
Clean-up costs: £1,000,000