We have, therefore, taken the decision that Environmental Impairment Liability (EIL) will become a compulsory cover where Section 5 (Public & Products Liability) is operative subject to the following criteria:
Those customers who have the EIL section included automatically will not be able to opt out as this section will now become compulsory - this is sometimes referred to as an ‘Unbreakable Bundle’.
If the customer has PL cover with us but the activity or trade is unacceptable then we will either; not offer EIL cover (New Business) or delete the cover (Renewal) and a premium will not be charged.
BIBU have taken the above decision as we believe that Environmental Impairment Liability (EIL) is an important cover for your client.
What if the customer has EIL cover elsewhere?
If the customer can provide proof of alternative cover then we should be able to allow a discount to the rate charged on the EIL section but the EIL section will remain in force.
You may already have received renewal invitations for policies effective from 1st April 2016 onwards which includes a letter giving your client 14 days to remove the EIL cover with a full refund in premium – in order to ensure that we comply with FCA regulations, this letter is no longer valid. Please contact us if this presents a problem.