Environmental insurance—contractors and consultants
Produced in partnership with Duncan Spencer of EDIA
Environmental insurance—contractors and consultants

The following Environment guidance note Produced in partnership with Duncan Spencer of EDIA provides comprehensive and up to date legal information covering:

  • Environmental insurance—contractors and consultants
  • Scope of activity
  • Potential environmental liabilities associated with contracted and consulting works
  • Legislation that applies to environmental damage caused by contractors and consultants
  • Insurance for environmental damage caused by contractors and consultants
  • Coverage for pollution
  • Contractor specific policies
  • Insurance and contractor warranties and indemnities
  • Considerations for the engagement of contractors and consultants
  • Protection for the client
  • more

Environmental insurance is a useful way of managing environmental risks stemming from the work carried out by contractors and consultants.

For more on environmental insurance generally, please see Practice Notes:

  1. Environmental insurance—when is it needed?

  2. Environmental insurance—extent of coverage

  3. Environmental insurance—types

  4. Environmental insurance—advantages and disadvantages

Scope of activity

For the purposes of this note, contractors and consultants are parties that have been engaged to complete work on behalf of a client. Contractors are usually those that complete the work, while the consultant may complete design or investigative activities.

While these activities are relevant to contaminated land consultants and contractors, the potential scope of activity is much wider, including:

  1. architects that may complete a design for fuel storage

  2. a foundation and earthworks contractor that may disturb soils, and

  3. internal fix contractors that may handle chemicals (even glue) in confined spaces

Potential environmental liabilities associated with contracted and consulting works

Potential environmental liabilities that may be associated with contractors or consultants include:

  1. pollution introduced to a construction site (ie a fuel bowser that spills)

  2. existing pollution made worse by the contractor (ie by the introduction of new materials that may mobilise contamination, or the creation of pathways, such as drains or piles, that allow pollution to escape)

  3. the disturbance of asbestos containing materials

  4. the introduction of chemicals that are not suitable to