Public Liability Insurance And Environmental Risks

Originally published in BLG's Environment and Health & Safety Digest, Autumn 2007

At the centre of the case of Bartoline Limited v Royal & SunAlliance Insurance plc and Heath Lambert Limited was the following question: are environmental clean up costs covered under public liability insurance policies?  

In this case, pollution resulted from foams used to fight a fire at Bartoline's warehouse. The Environment Agency took emergency measures to clean up and (as it was entitled to do) sent Bartoline the bill. It also ordered Bartoline to carry out further clean up works, which Bartoline carried out. Bartoline claimed its and the Environment Agency's clean up costs under its public liability insurance, which indemnified Bartoline against "legal liability for damages in respect of....accidental loss of or damage to property.....nuisance, trespass to land or trespass to goods or interference with any easement right of air, light, water or way". The Mercantile Court in