Environmental Liability Insurance

HDI's subsidiary in Slovakia has offered environmental liability insurance since July 2010. This new product provides liability cover as laid down by Act No. 359/2007 Coll. on Environmental Damage Prevention and Remedying, whereby operators are obliged to prevent environmental damage and adopt any necessary remedial measures, if any such damage was caused.

The insurance covers:

  • · cost of remedy measures if any environmental damage was caused to protected species, habitats and waters (includes primary, complementary and compensation remedies),
  • · cost of remedy measures if any environmental damage was caused to land.

The insurance company shall also pay any cost of measures to avert or mitigate any imminent or unavoidable environmental damage, regardless of whether any accident occurred or not.

The insurance also covers the insured's cost of claim determination and defence cost against any claims of governmental authorities or any third parties.

In the event that the environmental damage was caused due to the activity or defective product of the insured in the territory where Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on Environmental Liability with Regard to the Prevention and Remedying of Environmental Damage applies, the insurance company shall indemnify for the claims under the Directive's implementing legal regulations valid and effective in the relevant country.

HDI provides this environmental impairment liability insurance as an additional product to the general liability insurance.

Note: Pursuant to the Act, the operators performing the selected activities shall be obliged to provide financial cover of their environmental liability, including any costs of remedies and remedy measures to remove environmental damage during the whole period of any such activity.