In 2012 directors of Northstar Aerospace Inc. were held personally liable by the Ontario Ministry of Environment for contaminating the surrounding area of their Cambridge, Ontario manufacturing facility. Unfortunately for Northstar, environmental remediation costs were excluded from the directors’ and officers’ insurance policy.
In the end, “the directors and officers were forced to pay approximately $800,000 out of their own pockets for the completion of interim remediation work,” and “subsequently reach a settlement with the Ministry of Environment to withdraw the remediation order at $4.75 million.
Environmental contamination is a very real threat that can greatly impede any business’s operations and cause serious financial harm. Eagle Underwriting can save your clients business millions with full coverage Environmental Liability Insurance.
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Source: McCarthy Tétrault LLP