Environmental Impairment Liability (EIL)
The EU Environmental Liability Directive aims to make businesses Europe-wide responsible for the full consequences of environmental damage they may cause. This includes damage to protected species and habitats, underground water sources or groundwater, and land where there may be a human risk-factor.
Environmental Impairment Liability (EIL) is a form of insurance cover available for liabilities associated with environmental damage or pollution. Contractors that may be at risk from losses associated with damage or pollution caused by their activities may purchase EIL policies, and cover may be a requirement of a construction contract.
EIL can provide comprehensive cover for the construction phase of a project:
- Potential claims from regulatory bodies and third parties.
- Liabilities arising from the EU Environmental Liability Directive (not restricted solely to damage from pollution incidents).
- Onsite clean-up costs as required by legislation.
- Third party claims such as bodily injury, property damage, nuisance and trespass, and clean-up costs.
- Clean-up costs incurred by regulators.
- Incident response requiring emergency expenditure.
- Costs and expenses for investigations, legal defence and so on.
 Related articles on Designing Buildings Wiki
- Collateral warranties.
- Contaminated land.
- Contractors’ all-risk insurance.
- Design liability.
- Environmental Liability Directive.
- Future proofing.
- Insurance for building design and construction.
- Integrated project insurance.
- Planning for floods.
- Professional Indemnity Insurance.
- Residual value insurance.
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