|
Some comments on the limitations of Insurance Policies ECA members should be aware of.
This issue arises due to an inquiry from a client about a wetland landscaping/rehabilitation works and potential liability, and I think it of pertinent interest to the ECA.
ECA members may like to note that that all policies in Australia hold Pollution/Environmental exposure limitations/exclusions that may see a consultant liable and uninsured. E.g. clearing and revegetation of a wetland that may result in accidental removal or destruction of a rare species resulted in a Fine being issued by a local council. A pollution/environmental exclusion means that an insurer will not provide advice or any defence for the error. The "ripple effect" could result in the insured being overlooked for future engagement of services. In addition, and to the insured's shagrin, they may be asked to pay for the additional costs associated with sourcing replacement seedlings/heritage regeneration from a competitor? The significance of Veg Mgt Plans and the people that implement them are not always on the same page. One cannot guarantee the outcome of reports, so dislaimers are also essential in practices.
Without the client (eg local Council) being well informed, further costs down the line may be incurred and if the successful consultant’s tender was not insured for pollution/environmental exposures then the costs of rectification will not be underpinned.
Technically, any tender accepted that is not insured for their pollution/environmental exposures means that the contracted advisers are operating with a level of “reckless activity”. I.e., Uninsured. So, it's important not to necessarily go by the (insurance) caveats in tenders and correct insurance can 'cover' what's missing in the tender.
Conversely, if engaging a subcontractor to perform certain services, consider making sure that your tender documents include a provision that the appointed contractors hold Professional Indemnity Insurance that includes Pollution/environmental cover. (Few policies will defend the insured for error made by subcontractors).
Prudent pratice ought to result in no claims and sustained competitive premiums over time.
|
