Incidents of fly tipping are increasing in regularity and severity. Organised criminal gangs are carrying out fly-tipping on an industrial scale, affecting work sites and vacant commercial assets. The associated criminal activity; damage to gain entry, theft of fixtures, unauthorised occupation etc. can create claims of significant size. JLT Specialty’s (JLT) clients have reported claims whereby criminals have accessed sites/vacant warehouses and dumped illegal waste such as asbestos, solvents, oil, fridges and tyres etc. resulting in up to £288,000 of costs.
There are three extensions available within a standard property damage policy:
- Fly tipping: indemnifying the insured against the reasonable costs of clearing and removing any property illegally deposited in or around the premises
- Eviction of unauthorised occupants: whereby the insurer will pay the legal costs and expenses incurred by or on behalf of the Insured to evict squatters from any of the premises or parts thereof
- Extra security costs: the costs reasonably incurred and necessitated by the insured with the company’s prior consent following loss, destruction or damage in order to provide the premises with temporary additional physical protection.
If your portfolio contains high risk property such as out of town offices, vacant warehouses or disused sites it may be prudent to re-evaluate your needs for liability extensions or stand-alone EIL policies, as well as the level of cover already included in your policy.
Download Illegal fly-tipping bulletin
For further information, please contact Gary Reed, Head of Sales, European Real Estate on +44 20 7528 4399