Crucial Coverage for Your Small Business Clients

As an insurance broker, you understand the importance of protecting your clients from unforeseen risks. Environmental accidents are a growing concern for businesses of all sizes, and the consequences can be devastating.

A recent example of a fuel spill in the River Don near Doncaster in August 2024, reported by the BBC, highlights the devastating impact such accidents can have. The estimated clean-up cost (£200,000 - £2,000,000) emphasises the significant financial burden businesses face in such situations.

Limitations of Standard Public Liability Insurance

While your clients might have public liability insurance, it likely excludes environmental damage. While public liability insurance is a crucial component of a comprehensive risk management strategy, it often falls short when it comes to protecting businesses from environmental liabilities.

Standard public liability insurance is typically designed to cover claims arising from bodily injury or property damage. However, environmental incidents often involve long-term consequences that can extend far beyond these immediate impacts. It's important for businesses to understand these limitations and seek additional coverage through specialised environmental liability insurance policies.

ELI: Your Client's Safety Net

This is where Environmental Liability Insurance (ELI) comes in. ELI provides comprehensive coverage for businesses that face environmental risks, such as:

  • Cleanup costs: In the event of an environmental incident, such as a chemical spill or oil leak, ELI can help cover the costs of cleaning up the contaminated site. These costs can be significant, and without proper insurance, a small business could be forced to close its doors.
  • Third-party liability: If your client's business activities cause environmental damage to neighbouring properties or businesses, they could be held liable for the damages. ELI can provide coverage for these claims, protecting your clients from financial ruin.
  • Regulatory fines and penalties: Environmental regulations are complex, and non-compliance can result in hefty fines. ELI can help cover the costs of these fines and penalties, preventing your clients from facing significant financial setbacks.
  • Business Interruption: Environmental incidents can disrupt normal operations, leading to lost revenue. ELI can help cover these losses, ensuring business continuity.

By offering ELI to your clients, you take a proactive approach to risk management. As their trusted advisor, you demonstrate foresight in protecting them from unforeseen environmental liabilities. This not only safeguards their financial security but also protects their reputation.  Environmental incidents can severely damage a company's brand image. 

ELI helps mitigate the impact of negative publicity by ensuring swift cleanup and responsible environmental practices.

Why LBU's ELI is the Perfect Choice for Your Clients

LBU offers a comprehensive SME ELI policy designed to meet the specific needs of small and medium-sized enterprises. Our ELI policy covers a wide range of environmental liabilities, ensuring your clients are protected against a variety of risks.

Our team is always available to answer your questions, provide support, and assist with policy renewals. We believe in building long-lasting relationships with our clients and their brokers.

By partnering with LBU you can ensure your small business clients have the environmental liability coverage they need to operate with peace of mind. Our ELI policy provides financial protection against unexpected environmental incidents, allowing businesses to focus on their core operations.