Oil Leak Insurance, Polices, Liability & Your Obligations
Pollution incidents should be reported in the first instance to the Local Authority (LA) for the area in which the incident occurred, as they can respond rapidly.
The LA will contact the Environmental Protection Agency (EPA) if an EPA-licensed activity is concerned. Liability for pollution by the spread of oil is normally unavoidable and All oil spillages should be recorded on your organisation’s incident database and investigated to identify root causes so that appropriate preventive and/or corrective action can be implemented and sustained to prevent recurrence. Substantial fines are levied if your business or company or a person is deemed to be negligent in some respect causing the oil pollution or allowing a future oil pollution incident happen again through in action to the advice given here or by the LA or EPA professional representatives.
Public Liability policy
Pollution can result in very serious damage with claims from perhaps hundreds of individuals for loss arising from a single event. Insurers therefore consider potential risk exposures very carefully. Organisations need to assess control and monitor their exposure to pollution risks to and from their own premises and third parties.
The risk of pollution needs to be considered by each organisation in respect of exposure at their own premises and impact on a third party with business activities elsewhere.
Typically the Public Liability policy will exclude any liability for pollution unless the incident of pollution is arising from:
• Pollution or contamination caused by a sudden identifable incident
• An incident which was unintended and unexpected
• An incident that takes place at a specfic moment
Provided that all pollution or contamination arises out of one incident. The incident is usually considered to have occurred at the time, such an incident takes place.
• At a time and place during any one period of insurance
Property Insurance policy & Other insurance policies
A Property Insurance policy may exclude loss or damage caused by pollution or contamination but a couple of factors require review of your policy & cover by our specialist insurance loss assessors.
– Specifics of the policy (terms & conditions of cover) as these differ from policy to policy
– pollution or contamination which itself results from a contingency insured against