Environmental pollution is a very complex problem, due to its economic and social consequences. Actually, the environment is considered as a legally protected right, regardless of people or their property. This has generated a totally new legal system dedicated to its protection.
According to the General Law of Ecological Equilibrium and Environmental Protection (LGEEPA), environmental damage is understood as any loss, change, deterioration, impairment, or adverse modification of ecosystems, elements and natural resources. This type of damage happens constantly as a result of different human activities. Some of them, in fact, are considered Highly Risky, because of their potential to cause ecological damage, as is the case of activities in the Hydrocarbons Sector.
As is the case in the private sector, any damage caused to the environment must be repaired and, if it is impossible to repair, there has to be compensation in the form of an economic indemnity, paid by the party that caused the damage. This is based on the principle that «he who pollutes, pays.»
Reparation of environmental damage entails large economic sums, so it is important that those responsible have sufficient resources to deal with these obligations. If not, this can be the reason for a further economic, administrative and even legal sanctions.
In the case of companies, we know that setting aside a certain amount for this type of event is not easy, since they need to have financial liquidity. This is why the best option is to have the backing of environmental liability insurance, so, should environmental damage occur, their own economic resources will remain intact.
Environmental liability insurance can cover expenses and costs generated by emergency care, containment of contaminants, mitigation of environmental impacts and damages, characterization of contaminated sites, remediation of contaminated zones and restoration and environmental compensation.
NRGI Broker is an expert in environmental liability insurance.
Environmental pollution is a very complex problem, due to its economic and social consequences. Actually, the environment is considered as a legally protected right, regardless of people or their property. This has generated a totally new legal system dedicated to its protection.