A significant share in the Russian economy is attributable to the extractive industry and forest production, which causes a high environmental risks. The object of this study is the Russian legislation on compensation for damage caused to the environment (environmental damage), and the practice of its application by courts. The purpose of the study is to identify existing problems in the field of environmental compensation and propose ways to solve them, primarily through the analysis of insurance products. Research methods: general scientific, private scientific and special. Specific sociological research methods (analysis of documents and official materials), logical-legal method, methods of interpretation of legal norms, legal forecasting, etc. were used. Conclusion: the relevant relations are not fully regulated systematically, and uncertainty in solving a number of practical issues related to the consequences of negative impact on the environment disorients economic entities, hinders the development of environmental insurance. In the case of the introduction by the legislator of compulsory liability insurance for environmental damage, it is advisable to specify as the main form of insurance compensation, i.e. the obligation of the insurer to finance the costs of eliminating the consequences of pollution and remedial measures. Exceptions can be made for cases when a damaged natural resource cannot be restored to its previous state. An alternative to commercial insurance may be other forms of environmental risk coverage, for example, participation in mutual insurance companies, the conclusion of agreements on the distribution of risk (harm).