The Bartoline Extension

Incidents happen and thankfully most of these incidents don’t lead to anyone being seriously injured.  The environmental damage can, however, be significant.  Sometimes you need to think about the wider implications of your business’s risks.  This is an example of why…….

Bartoline manufactures a number of items for the home improvement market including solvents and wood care products.  A fire at the company’s premises on 23rd May 2003 lead to significant pollution as chemicals were washed into two local watercourses.

The Environment Agency used its statutory powers under the Water Resources Act 1991 to carry out emergency work to minimise environmental damage and to remove and dispose of contamination.  The Agency then sought to recover costs from Bartoline.

The total costs of the clean up operation, including the requirements the Agency made of Bartoline themselves, amounted to over three quarter of a million pounds.

Bartoline made a claim for these expenses under its public liability policy. Royal and Sun Alliance (RSA), Bartoline’s insurers, refused indemnity, stating that the expenses incurred did not fall within the scope of the policy.

Bartoline took RSA to court in 2006, alleging breach of contract, seeking clarification of the legal meaning of the term "damages" in an insurance context. The judge, however, found in favour of RSA.  The judgement was, in essence, that the liability for damages is based on an actionable wrong. Bartoline’s liability to the Environment Agency was statutory and the money owned to the Agency was a debt.

As a result of this ruling, liability insurers may now provide a “Bartoline extension”, covering the insured for limited costs of clean up required by environmental authorities.

Our Hazardous Haulage Scheme includes a “Bartoline extension”.  If you are concerned about and want to insure against any risk your business may be exposed to in relation to potential environmental damage, please give me a call.

6 Reasons to Use an Insurance Broker

Insurance brokers are experts in the field of insurance.  So as you might expect there are some really good reasons to use a broker.  Here are just 6:

1)          Brokers know what they are looking for. You probably only research the insurance market around your renewal date.  You can save a lot of time by asking a broker to do the searching for you.

2)          Brokers aren’t tied to one or two insurance companies.  So a broker is free to review the whole market on your behalf.

3)          Brokers can match your specific requirements to the myriad of policies available.  Getting the right policy that covers your exact needs could save you thousands of pounds.  It’s too late when the claim goes in to find out that you weren’t actually covered in the first place.  You may think all policies are standard but they are not.  Many businesses need tailored insurance policies depending on actual circumstances.

4)          Brokers are likely to get better terms for their clients.  This isn’t just because of economy of scales.  Brokers do a good deal of business with insurance companies.  They will get a good price.  It isn’t just volume of business that counts, it’s the understanding of the industry too.  Brokers know the insurance companies and brokers know you.  Where you may face reluctance from insurance companies, brokers are able to remove that element of uncertainty and facilitate cover.

5)          Brokers’ business is based on reputation.  They won’t recommend something that doesn’t fit.  It’s important to them that they ensure the client understands the risks of their business and transfers the risk (as necessary) to an insurance company.  What develops is a close business relationship based on trust.  That thorough understanding enables you to be covered now and as your business changes.

6)          Brokers can help you with your claim.  Should the worst happen you can rely on your broker to help with the paperwork and the process and enable a speedy payment.

Finally it’s worth noting that brokers have Professional Indemnity cover which gives you the added protection should he get it wrong.  If you'd like any help with your insurance please get in touch.