The environmental sector has seen rapid growth over the last few years. This is in response to EU legislation and pressures of the green agenda which has led to a significant increase in the demand for environmental specialists. If you are working in this area we can assist you to arrange appropriate Professional Indemnity insurance cover. This cover will operate to protect you in the event of professional negligence claims made against you or your business.
The term “Environmental Consultancy” can be used to describe a vast spectrum of activities, ranging from energy reduction consultants and environmental policy consultants, through to contaminated land surveyors and remediation contractors. Each of these activities requires professional indemnity insurance. Without this cover, you leave yourself exposed to claims that can be substantial.
Below highlights two examples of claims that an environmental consultant is potentially exposed to:
Example 1
An energy assessor advised a commercial client that in order to save energy and reduce energy bills they should make a number of changes to the premises, including upgrading the current insulation provisions. The client subsequently had the recommended work commissioned but six months after the works had been completed the client was unhappy with the savings achieved and sought a second opinion. A second advisor stated that the original work should never have been carried out and the client claimed for full reimbursement in respect of the unnecessary modifications. The claim was settled out of court for £35,000 plus £10,000 for the costs of appointing a specialist solicitor.
Example 2
In this instance the Insured was an ecological consultant and was instructed to provide an ecological survey and advise on a site for a potential 500 house development. A planning application was submitted with an Environmental Statement containing ecological input provided by the insured. Planning permission was granted but a DEFRA disturbance license was required before development could commence due to the discovery of Great Crested Newts on the land. The insured prepared a license application, which was rejected. The insured re-drafted and re-submitted the license application, but this was also rejected. The insured was taken off the project and a replacement ecological consultant subsequently secured the DEFRA license where the insured had failed to do so. The claimant pursued the insured for losses estimated to be £400,000 due to delays with the project. The claim eventually settled for £150,000 out of court with additional solicitors costs of £50,000.
At John Heath Insurance Brokers we are actively seeking environmental risks of all types and are able to offer full pollution cover up to the indemnity limit, along with competitive premiums.
For further details, you can look at our Environmental Consultants Professional Indemnity insurance page or contact us.