Liability Insurance for Acute Pollution
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Liability Insurance for Acute Pollution?
The liability insurance covers liability for damages incurred by the insured due to accidental pollution in accordance with Article 16 of Act No. 33/2004 on the prevention of marine and coastal pollution. The insurance is an add-on to Commercial Liability Insurance and applies only to incidents that fall outside the scope of that insurance.
What Is Covered?
Acute pollution damage caused by the policyholder, even if the damage cannot be traced to negligent conduct by them or their employees.
Acute pollution damage resulting from the transport of oil, toxic or hazardous substances, or from industrial activities listed in Annex I of Act No. 33/2004 on the Prevention of Pollution of the Sea and Coast.
Costs of measures to limit or prevent damage.
What Is Not Covered?
Liability for damage to property owned by the insured, jointly owned, borrowed, rented, stored, sold, transported, or otherwise in their care.
Liability for damage to property that the insured has undertaken to repair, clean, install, or otherwise work on, if the damage arises from or during such work.
Pure financial loss.
Damage caused by fire.
Damage caused by terrorism resulting from any kind of biological or chemical effects and/or poisoning, including bacteria and viruses.
Damage not defined as acute pollution, such as remediation and damage resulting from prolonged pollution conditions.
Are there any restrictions or precautionary rules?
The insured must comply with Vörður’s precautionary rules.
The insured must ensure that only employees with the legally required qualifications and competence operate construction machinery and other equipment.
The insured must be in a physical condition to perform their duties safely and must not be under the influence of alcohol, stimulants, or sedative drugs.
Before starting excavation, drilling, or sawing work indoors or outdoors, the insured and their employees must familiarize themselves with the location of pipes, cables, and other utilities in the area where the work is planned.
The insurance does not cover damage that occurred before the insurance period began, even if the damage is not discovered until during the insurance period.
Where is the insurance valid?
The insurance is valid in Iceland and within Iceland’s pollution control zone.
What are the insured's obligations?
To provide all necessary information, whether at renewal, when making changes to the insurance, or when reporting a claim.
To report any damage at the earliest opportunity, and no later than within one year from the date of the incident.
If stated in the insurance certificate that coverage applies only to specific use or activities, the insured must notify the company of any changes to that use or activity.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.