A TOTAL of 1,066 enterprises in Shenzhen are required to start insuring themselves against environmental pollution accidents this month, as the city further promotes compulsory liability insurance for environmental pollution, the Shenzhen Evening News reported Thursday.

The insured enterprises will be covered if accidents involving environmental pollution occur. Those that fail to get insurance on time and in accordance with the requirements will be blacklisted.

As a kind of property insurance, compulsory liability insurance covers compensation for environmental damages caused by the enterprises during production and other operations.

Additionally, the insurance requirement has put forward mandatory requirements regarding the scope of compensation, liability limits, premiums, the triggering of liability, and the settlement of claims.

The insurance requirement is said to be an important environmental and economic policy to protect the environment by taking advantage of commercial insurance.

The authorities issued a list of 1,066 enterprises participating in the pilot work this month, which covers 10 industries including electroplating, oil depots, dangerous chemicals and printed circuit boards. The enterprises are required to purchase the insurance before the end of September.

It has been reported that the number of Shenzhen companies that purchased the liability insurance for environmental pollution reached nearly 1,000 when it was not compulsory, from 2014 to 2017, accounting for more than half and one-10th of the total amount in Guangdong Province and in the country, respectively.

These companies have insurance premiums totaling over 17.5 million yuan (US$2.61 million) and provide nearly 2 billion yuan in coverage for risk prevention.

(Zhang Yu)