The industrialization process and the damage to the environment that it generates, have led to the creation of a new type of insurance: the Environmental Civil Liability.
This is an obligation established by Law 26/2007 of October 23th.
Companies have the duty to take responsibility and undertake to repair the damage they may cause to the environment. Thanks to this law, it’s possible to sanction the entities that pollute without taking due precautions.
The main coverage of this type of environmental policy is compensation for damage caused by contamination of the environment in an accidental way. In this case, the insurance company covers the costs of repairing the natural elements. It also covers the replacement of the affected flora and fauna species and guarantees such as the cost of decontamination of the soil or water.
It can also include prevention costs in the case of imminent threats of environmental damage, and, in the event that environmental damage has already occurred, they also deal with avoidance costs, proposing the necessary measures so that the damage to the environment is not greater.
Surely, this type of policy and the precautionary measures that they entail are a very useful instrument to regulate the activity of contamination by companies.
At Boracay Brokers, we recommend that you always be as informed and protected as possible to avoid inconvenient situations. If you need advice, we are here to help you.
Boracay Brokers, seguros por naturaleza.