Environmental & Pollution Liability
Comprehensive protection addressing environmental risks that are often not covered under standard insurance policies. Safeguard your business from pollution incidents, clean-up costs, and regulatory action.
Get Expert AdviceWhy Environmental Liability Insurance Is Essential
Environmental risks are increasingly in the spotlight for New Zealand organisations. Stricter regulations, heightened public awareness, and the potential for significant clean-up costs or third-party claims mean that even a minor pollution event can have major financial and reputational consequences.
What Is Environmental Liability Insurance?
Environmental Liability Insurance (sometimes called Pollution Liability or Environmental Impairment Liability) is a specialist policy that covers the costs and liabilities arising from pollution events, whether sudden and accidental or gradual.
It is designed for businesses and organisations whose operations, products, or sites could cause environmental harm—risks that are often excluded from standard liability policies.
What's Covered
This policy covers bodily injury, property damage and environmental damage caused by pollution incidents arising from locations owned or operated by the insured.
Clean-Up Costs
Expenses to remediate pollution on your site or neighbouring properties, as required by law or contract.
Third-Party Liability
Claims for bodily injury, property damage, or loss of use caused by pollution incidents.
Legal Defence Costs
Costs to defend regulatory investigations, enforcement actions, or third-party lawsuits.
Emergency Response
Immediate costs to contain and mitigate a pollution event swiftly and effectively.
Gradual & Sudden Events
Cover for both sudden/accidental and gradual pollution (subject to policy wording).
Biodiversity Damage
Costs to restore or compensate for harm to protected species or habitats.
Key Exposures for New Zealand Organisations
Drawing on current market trends and regulatory developments, key environmental exposures include:
- Accidental Spills or Leaks: Fuel, chemicals, or waste escaping into soil, water, or air
- Historical Contamination: Discovery of legacy pollution from past activities
- Gradual Pollution: Slow leaks or emissions that go undetected for months or years
- Contractual Liability: Responsibility for environmental damage under lease or supply contracts
- Third-Party Claims: Neighbours or public seeking compensation for property damage or health impacts
- Regulatory Action: Clean-up orders, fines, or penalties from councils or central government
- Biodiversity Damage: Harm to protected species, waterways, or sensitive habitats
Policy Benefits
Our Environmental Liability policies provide comprehensive protection tailored to your specific operations and risk profile.
Covers both Sudden & Accidental and Gradual Pollution incidents
Emergency Response Expense coverage explicitly provided
Applicable to various businesses including industrial or commercial sectors
Protection for real estate transactions, mergers and acquisitions
Pre-existing or new conditions coverage offered together or separately
Owned and operated locations scheduled onto the policy
Coverage for transport-related pollution liability
Cover for business interruption
Defence Costs in addition to the Limits
Optional Statutory Liability policy Endorsement
Territory
- • NZ and Pacific Islands domiciled risks
- • Worldwide Territory and Jurisdiction can be considered on request
Capacity
- • Capacity can be provided up to $30m depending on coverage requested
- • Tailored limits based on your risk profile
Protect Your Business from Environmental Risks
Don't let pollution incidents threaten your business. Contact our specialist team to discuss your environmental liability insurance needs.
Request a Consultation