Environmental risk insurance
Regardless of its nature, your activity can generate environmental risks, meaning it can have consequences on both the human and natural environment. These risks can potentially hold your company liable. Therefore, it is essential for you to protect yourself with adequate insurance. The Roederer Group is here to assist you in selecting the most suitable solution for your situation.
The legal and regulatory context around environmental risks has been strengthened in recent years, notably through Environmental Liability and Ecological Damage. Both provisions deal with environmental damage (natural elements, soil, water and protected natural areas). In addition, there is also a liability regime for damage caused to third parties (e.g. a business activity other than yours, or damage caused to others). The conventional "Civil Liability for Environmental Damage" insurance cover is therefore no longer sufficient to meet the new responsibilities that your company may have to face:
- sites subject to "Registration" or "Authorization" under the ICPE regulations are excluded from most General Civil Liability policies;
- gradual environmental damage is excluded from most General Civil Liability policies;
- damage to biodiversity (environmental liability law of 1 August 2008) is usually excluded from General Civil Liability policies;
- pecuniary losses suffered by the insured, such as clean-up costs, costs of site clean-up for movable and immovable property and operating losses are not covered by General Civil Liability policies.
It is therefore essential to take into account the different liability regimes and, above all, to cover them to ensure the legal security of your business.
| Civil Liability for Environmental Damage | Civil Liability for ecological damage | Environmental Liability |
| Your Civil Liability for Environmental Damage is incurred when your business activity causes pollution that results in personal injury, property damage and non-material damage to a third party. | You are obliged to repair the environmental damage you cause as a result of your business activity or products. | If your professional activity causes serious damage or an imminent threat of damage to the natural environment (water, soil, protected species and natural habitats), the Prefect may ask you to repair the environmental damage by taking concrete measures. |
| All companies, local authorities, professional, commercial, industrial or craft activities are concerned. | This includes all persons who cause environmental damage. This obligation applies to companies, regardless of their size and business activity, as well as to individuals. | All companies, local authorities, professional, commercial, industrial or craft activities are concerned. |
Today, the insurance market offers complete and effective solutions to cover your liabilities for environmental risks. Are you having trouble finding the one that best suits your needs? The Roederer Group's experts can help you choose a suitable, comprehensive environmental liability insurance solution at the best price.
Environmental risk insurance: the principle of security deposit
The main objective of the security deposit principle is to give the community the certainty that the costs of pollution prevention and control will be covered by the guarantor, even if the operator becomes insolvent.
In accordance with the French Environmental Code, certain sites (defined as "environmentally classified facilities") must be covered by this financial guarantee. These are:
- SEVESO classified sites;
- quarries;
- non-hazardous waste storage facilities (NHWFs)
- other installations subject to prefectoral authorization
This cover is issued by an insurance company or a financial institution approved by the authorities. We help you choose an organization that will be able to assume this decisive role in securing and perpetuating your business activity involving risks.
Environmental liability guarantee
The environmental liability guarantee applies in the event of the purchase or sale of an operating site, or a merger and acquisition operation. The aim is to cover the financial consequences of civil and administrative liability for damage resulting from existing but unknown historical pollution incidents.
Our environmental risk insurance experts will recommend an appropriate solution after auditing your business and your risks. They will pay attention to the following points:
- your administrative situation regarding environmentally classified facilities;
- your geographical location (proximity to Natura 2000 or other protected areas);
- the need for a financial guarantee to meet the legal requirement.
Please do not hesitate to contact us for any further information.