Why insure against clean-up costs to restore the environment?
With the environment on the top of the political agenda the cost of dealing with pollution continues to rise. The Environment Agency (E.A.) have robust laws to uphold and will prosecute the polluter.
The E.A. state that they “Work with farmers to build their role as guardians of the environment, tackling pollution we cannot see as well as adding to the beauty of the countryside.” they also point out that they “Take action against those who don't take their environmental responsibilities seriously - every year we bring hundreds of offenders to justice.”
Farmers are being scrutinised like never before – it makes sense, where possible, to insure against such potential losses.
What is Enviro-Poll?
A market leading insurance product that protects farmers against the costs associated with a pollution incident arising from new environmental damage legislation.
By law, farmers are now responsible for the clean-up costs due to their negligence or accidental damage that results in contamination to the environment. This applies to;
1. Own land clean-up costs
2. Other land clean-up costs
3. Emergency containment costs
4 .Environment Agency expenses/charges
5. Reinstatement of natural habitat costs
In addition, it makes no difference if the pollution or damage occurs suddenly or whether it has been a gradual process stemming months – the polluter still pays! This legislation is controlled by public, criminal and civil law making it extremely onerous; the potential is that this could result in bankruptcy.
Why did we develop this cover?
F&M realised just how far reaching the implications were for farmers once the environmental liability legislation came into force in March 2009. As the largest independent brokerage specialising only in the farm insurance sector we feel it is our duty to ensure our products reflect the needs of a constantly evolving modern farming industry.
Most other brokers cater to many different sectors and only have farming divisions (or indeed one or two brokers). As a specialist company, we are well placed to develop products that specifically address farming issues.
What if my insurance advisor tells me I don’t need this cover?
That is not going to happen, every insurance advisor that specialises in farm insurance knows fully that without this insurance you have a gap in your cover and they are duty bound to advise as such. Where you are advised to take out Enviro-Poll and choose adversely then your broker has done no wrong.
Enviro-Poll is unique in that it is stand alone and can be purchased direct from Farmers & Mercantile Insurance Brokers by you, the farmer call us on 01604 782 782 or email us.
Solution for farmers
A standalone Enviro-Poll cover policy that has been underwritten by a specialist Environmental Insurer. If you don’t have this specialist insurance, there is undoubtedly a gap in your cover, given the seriousness of this issue you need to consider the best solution for you. The cost of taking out this insurance is not prohibitively high.
Let’s talk money.
How much does a clean-up cost? For starters the initial consultant’s report on the incident could cost you up to £50,000, that’s before you’ve started to pay for the actual clean-up. You must use EA preapproved clean-up companies and pay their rates – you cannot use your own contacts and negotiate price! To be fair, there is no guessing an actual clean-up cost because it will vary from incident to incident, but there is also no limit of how much you will have to pay and we will start to see companies sued for hundreds of thousands of £s.
What if I am already insured?
Most standard liability policies will not have the right type of cover; policies with clean-up cost limited to approx £30,000 may not even scratch the surface should you be unfortunate enough to find yourself being prosecuted by the EA for a disaster. Your farm, your assets and your house will be on the line – it’s not like a tractor theft whereby it would hurt you financially if not insured but wouldn’t bankrupt you – this could be the financial ruin of you.
Why so dramatic?
This is so onerous that even if someone else were to cause the damage but it be on your land – you are still held responsible - so whilst good risk management is still necessary it won’t protect you from this liability.
What if I do not have this cover?
Not having Enviro-Poll could be akin to gambling the farm, there are many assets you will currently insure that you could possibly afford (although would not appreciate or find easy) to pay to replace if need be. A prosecution under the new ELD isn’t like replacing an auger on the combine or re-roofing the barn, it’s a bill that can escalate beyond your ability to pay.
How do I obtain the Enviro-Poll cover?
This cover is available from Farmers & Mercantile Insurance Brokers. This is the only stand alone policy available that has been specifically designed for farmers.
Cost varies dependent upon acreage, enterprises and the risk factors involved.
To enquire about or purchase this cover please either;
Call 01604 782 782
Email email us.
Submit an online Enviro-Poll Insurance enquiry