Lycetts offers environmental impairment liability insurance for farming businesses in the event of environmental disturbance or damage.

The risk of pollution is ever present in agriculture and the Environmental Liability Directive ensures that legislation operates on the polluter pays principle, although the legislation goes wider than pollution. For example, it includes accidentally ploughing up rare habitats or even overgrazing.

Costs incurred through a pollution event can be expensive, with clean up and containment, EA or SEPA charges combining with the costs associated with reinstatement of the natural environment. Lycetts can arrange cover to protect against these costs from both sudden and gradually operating incidents.

Costs a farming business could be exposed to include;

  • Civil liabilities. For example, when contamination migrates to someone elses property causing damage and the potential loss of income;
  • Clean up liabilities associated with all land and watercourses involved, regardless of ownership. That can amount to many thousands of pounds per acre;
  • Reinstatement costs. The legislation will require the landowner to pay to reinstate the damaged habitat/watercourse, however long that may take.
  • Criminal Liabilities. This legislation falls under criminal law, not civil law. Whilst no insurance policy will cover a fine, it will pay for legal defence costs.

In the event of a claim, please notify your Lycetts account executive or claims handler as soon as possible, and certainly of the incident. Some policies have strict time limits for notification of claims, so if there is a delay you may prejudice your claim.

If the claim is to be for theft or malicious damage, please remember to report the incident to the police and obtain a crime reference number. On larger claims (in excess of £2,000), insurers may wish to appoint a loss adjuster, in which case your Lycetts team will provide advice on procedure. Regarding liability claims, it is essential that any potential claims are notified to Lycetts immediately and all correspondence is promptly forwarded to your Lycetts contact.

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