By Organisation for Economic Co-Operation and Development
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Extra resources for Environmental Risks and Insurance: A Comparative Analysis of the Role of Insurance in the Management of Environment-Related Risks
6 – ISBN 92-64-10550-6 – © OECD 2003 2. ENVIRONMENTAL POLLUTION RISK AND INSURANCE pollution conditions originating from the insured plant, including mitigation costs. This type of policy, also marketed as Pollution Legal Liability policy (PLL), is written on a claims-made, manifestation or discovery basis and it generally excludes NRDs, biodiversity damages and the on-site cleanup obligations mandated by the competent authority. ● Coverage for on-site cleanup liability. This type of policy offers a first-party environmental remediation coverage for the risk of incurring on-site cleanup obligations, generally excluded from the EIL policy (it shall be noted that, sometimes, EIL and PLL policies contain a first-party extension of coverage for on-site cleanup costs).
The definition of ENVIRONMENTAL DAMAGE includes: BIODIVERSITY damage, WATER damage and LAND damage. YES. ENVIRONMENTAL RISKS AND INSURANCE No. 6 – ISBN 92-64-10550-6 – © OECD 2003 Traditional damages (death, bodily injury and property damage) ar NOT COVERED by the proposal. The competent authority shall have the power to issue compulsory cleanup orders, but LAND DAMAGE triggers liability ONLY IF soil contamination creates serious potential or actual HARM TO PUBLIC HEALTH. Potentially responsible parties Compulsory environmental insurance As for ENVIRONMENTAL DAMAGE: only the operators of dangerous activities listed in Annex 1.
ITALY: Pool RC Inquinamento. ● SPAIN: Pool Español de Riesgos Medioambientales. ● THE NETHERLANDS: Nederlandse Milieupool. c) Different products for different needs As discussed in the previous sections, the boundaries of environmental liabilities in OECD countries are expanding: an increasing number of responsible parties are called upon to comply with several remedial obligations. From an insurance point of view, therefore, a correct approach to the pollution risks entails the need for some technical distinctions.