Environmental liability
The law requires environmental damage to be remedied. Even where there is no fault.
Key
- Annex III
- We check it
- Financial guarantee
- Evidenced
- Decontamination
- Covered
The Environmental Liability Act imposes an obligation to restore the environment to its original state, regardless of whether there has been negligence. For Annex III activities, providing a financial guarantee is also mandatory. An accidental spill can lead to remediation costs that no SME can absorb.
Ley 26/2007
Environmental Liability
Remedying the damage, even without fault.
Any operator that causes environmental damage or an imminent threat of damage must take measures to prevent, avoid and remedy it, and bear the cost.
For Annex III activities, liability is strict and, depending on their priority, a financial guarantee based on a risk analysis is mandatory.
- Primary, complementary and compensatory remediation
- Mandatory financial guarantee depending on activity
- Insurance is the most common way to provide it
Impact map.
The same site, two ways of polluting it. Compare how the damage spreads and who covers it.
- How it occurs
- A sudden, visible event that is detected immediately.
- General liability
- With limits
- Environmental policy
- Covered
- How it occurs
- A slow, continuous leak that may take time to come to light.
- General liability
- Not covered
- Environmental policy
- Covered, unless already known before the policy was taken out
Three ways to remedy the damage
The law is not satisfied with compensation: it requires the environment to be restored to its original state. It does so at three levels.
- Primary remediation
- Returns damaged natural resources to their baseline condition, or as close to it as possible.
- Complementary remediation
- Where primary remediation does not achieve full restoration, it provides equivalent resources, even at another site.
- Compensatory remediation
- Compensates for interim losses of resources while primary remediation takes effect.
Do you need an environmental financial guarantee?
Five questions about your activity. Nothing is sent: the result appears right here.
Does your activity require an integrated environmental permit?
Do you store or handle hazardous substances?
Do you manage, transport or treat waste?
Do you make discharges to water or emissions to the atmosphere that require a permit?
Do you use underground fuel or chemical storage tanks?
Why your general liability policy is not enough.
| General liability | Environmental policy | |
|---|---|---|
| Bodily injury and property damage to third parties | Covered | Covered |
| Sudden and accidental pollution | With limits | Covered |
| Gradual pollution | Not covered | Covered |
| Damage to unowned natural resources | Not covered | Covered |
| Complementary and compensatory remediation | Not covered | Covered |
| Evidences the financial guarantee required by law | Not covered | Covered |
How we handle it.
Activity
We check whether it is listed in Annex III and its priority level.
Risk analysis
We review or coordinate the analysis that sets the amount of the guarantee.
Policy
We place the risk with insurers that underwrite it.
Declaration
We help you file the formal self-declaration with the authorities.
What people ask us.
Is my activity listed in Annex III?
We check it for you using your CNAE code (Spanish business activity classification) and your environmental permit. If it is listed, the financial guarantee is mandatory and must be evidenced.
Is this not covered by my general liability policy?
Liability insurance covers damage to third parties, not the legal obligation to restore the natural environment, which is a public-law duty.
Does it cover pollution from years ago?
Gradual pollution that is already known is excluded. Pollution that comes to light now without prior knowledge may be covered, subject to the policy wording.
Better to know before the inspection.
We check your activity and call you during office hours.