Environmental insurance for mining companies

Mining companies around the world are increasingly being held to greater account for environmental damages. Liabilities from a polluting incident can have severe, immediate repercussions from both a financial and reputational standpoint, while in response governments may revoke or suspend operating licences, and levy large penalties.

Environmental risks must be strategically managed in order for mining companies to operate, to be in a position to acquire or dispose of assets without long-tail liabilities, as well as to manage indemnities or escrow funds.

We provide environmental insurance solutions across the mining industry. Liabilities from a polluting incident can have severe, immediate repercussions from both a financial and reputational standpoint. Our team of experts will work with you to find the right solution to mitigate potential environmental risks.


Environmental risk

Typically liability policies contain modifiers and exclusions for pollution, thereby limiting coverage. Environmental impairment liability (EIL) is designed to dovetail with cover, not duplicate it. Furthermore, in contrast to the standard liability insurance market, EIL insurers have appetite for new mining risks.

The mining industry has a chequered past in respects to environmental damage. In recent years the industry has made strides in ensuring that operations minimise the impact to the broader environment and local communities.

However, as many emerging markets are now becoming more litigious, the risks of fines, penalties, repudiation of licence and government mandated suspensions of production are increasing.

Environmental risk

Our global team of specialists understand mining risks spanning the entire project lifecycle. We manage a large and established client base of mining companies, contractors, traders, and financiers, across a range of commodities and regions.

Our objective is simple: to provide our clients a competitive advantage by enhancing their resilience and empowering them to take risks. Working with you, we can help you understand and mitigate your environmental risks.

Environmental risks for mining companies

  • Contamination or siltation of soil, groundwater and surface water (e.g. tailings dam failure, tailings pond seepage, acid rock drainage) and air pollution can cause production stoppages, damage to first and third party property and additional costs for clean-up
  • Environmental damage is becoming increasingly political. Regulators can suspend operations, levy fines and penalties, and cancel licences. Many mining countries are becoming more litigious
  • Waste pile / Spoil tip / Pit heap collapse can cause production stoppages as regulators suspend operations for investigatory purposes leading to exposures to third party liability
  • Spills during transportation (of commodity or operational supplies such as diesel or leaching agents) either by the insured or third parties can cause clean-up costs, delay of operations and risks of fines and penalties
  • Reputational issues can damage share price, community relations and risk licence repudiation.

Our environmental team's key facts

200% Increase in the level of environmental placement in 2017-18
GBP 5 Million + placed into the London market
400 million+ environmental capacity accessible in the London markets
One of the largest environmental broking teams in London


No two mining companies have the same risk profile; risk is specific to country, project phase, commodity and a range of other nuances. JLT’s environmental impairment liability (EIL) team will work with our mining clients to structure a policy that mirrors the client’s risk profile.

Our team has a deep understanding of complex environmental risks and the capacity, experience and capability to provide market leading expertise.

Our dedication to service has resulted in a 200% increase in the level of environmental placement in 2017-2018 and environmental is an area JLT are committed to invest having subsequently doubled the dedicated team size to account for this growth.

Our capabilities include:

  • A standalone specialist environmental impairment liability team that have a cross-industry experience with specific natural resources expertise
  • We have close relationships with EIL insurers and are at the forefront of product development
  • Market leading claims advocacy
  • Our EIL team is supported by JLT’s analytics and modelling team. We can model environmental exposure using scenario analysis, limits exhaustion analysis, risk tolerance analysis and peer group benchmarking.


Coverage can be for either pre-existing unknown pollution conditions (historical, legacy property use) and/or new pollution conditions (operational exposures). There is USD 500 million of available capacity.

Coverage includes:

  • Onsite and offsite remediation/clean-up costs to the extent required by environmental law
  • Third-party bodily injury or property damage claims resulting from pollution conditions
  • Legal defence costs
  • Civil fines, penalties, and punitive damages, to the extent where allowable by law
  • Non-owned disposal sites which result in waste generator liability associated with waste streams
  • Claims arising out of transportation exposures (i.e. spills from upset-overturn)
  • Business interruption, extra expenses, and delay costs as a result of pollution conditions
  • Indoor air quality – including mold, legionella, bacteria, etc.
  • Spills during transportation of materials to and from the insured property
  • Illicit abandonment (‘midnight dumping’) of hazardous materials on an insured property
  • Emergency response – costs to respond to pollution conditions that poses an immediate threat
  • Crisis management and/or public relations management costs.
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