What are the Biggest Environmental Risks in 2023?
Here at Land Based Underwriters, keeping our ears close to the ground is imperative in order to keep up to date with the latest issues in the agricultural industry. In turn, this helps us to provide the best possible service and products to keep your clients protected. We explore the latest trends in claims and help you to protect your business.
Rise in Fire-Related Environmental Damages
Recent claims statistics indicate that there has been a steady increase in fire-related environmental damage claims and losses within the agricultural industry, highlighting those businesses that did not have proper practices and checks in place to avoid such incidences. Combined with increasing climate change-related incidents, introducing significant environmental exposures, the insureds must consider the pollution risks arising from firefighting run-off which can often be overlooked.
Fire services play a critical role in controlling fires to minimise damage however while mitigating fire damage, various chemicals can be left behind from the fire extinguishing wastewater which is a risk that should not be ignored. The site owner is responsible for the pollution arising from the extinguishing waters and a lack of containment could result in liability.
Critical Questions for Farm Insurance Brokers to Ask
- What risks are your clients’ sites exposed to?
- What environmental impairment cover is required to cover environmental damage or losses?
- Are substantial checks in place to manage environmental risks on site?
- Is there a robust crisis management plan in place for emergency response and remediation should an adverse event occur?
- In the event of water run-off, is the local drainage network sufficient?
What Can You Do to Protect Against EIL Damages?
Within the agricultural industry there are several steps you can take to prepare against environmental impairment damages as a result of fire water run-off. Firstly, ensure there is a fire water run-off spill response plan to help prevent contamination of nearby streams rivers, or groundwater sources. Secondly, ensure there are containment measures to contain spills that may occur during a fire. Prevention is key, so storing hazardous materials safely and securely is imperative.
By taking these steps, your clients can help reduce the risk of environmental impairment damages resulting from fire water run-off.
Get in Touch
Contact Land Based Underwriters today for more information and to discover the perfect policy to protect your farm with environmental impairment liability insurance.