The government and private sector will support small businesses' environmental liability insurance premiums by up to 50%. This initiative aims to temporarily alleviate the insurance cost burden this year, with plans to expand support next year through risk assessments and facility inspections and improvements.
On September 3, the Ministry of Climate Energy and Environment will sign a memorandum of understanding at the Small Business Association in Yeongdeungpo, Seoul, with the Small Business Association and DB Insurance for the "Environmental Liability Insurance Premium Support Program for Small Businesses," the ministry announced on September 2.
Environmental liability insurance is mandatory for businesses operating certain facilities to ensure that victims can receive prompt compensation in the event of environmental pollution incidents. Through this agreement, the government aims to reduce the insurance payment burden on small businesses and enhance their ability to respond to environmental accidents.
Under the agreement, DB Insurance, the representative insurer for environmental liability insurance, will contribute 500 million won. The Small Business Association will recruit and select beneficiaries, focusing on small businesses.
Selected small businesses will receive support for up to 50% of their environmental liability insurance premiums. This measure is intended to reduce the economic burden on small businesses that are required to purchase mandatory insurance.
The Ministry of Climate Energy and Environment and the Small Business Association plan to continue collaborating with the representative insurer to improve the environmental and safety standards of small businesses.
The premium support will be provided temporarily this year. Starting next year, the support system will shift to enhancing the capacity for preventing environmental accidents at business sites. This will involve assessing site risks and inspecting facilities to identify areas needing improvement.
"This agreement represents a collaboration between the government and the private sector to prepare small businesses for environmental accidents," said Jo Hyun-soo, Director of the Environmental Health Bureau at the Ministry of Climate Energy and Environment. "Starting next year, we plan to establish a more sustainable support system through risk assessments and facility inspections and improvements."
* This article has been translated by AI.
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