Environmental insurance for real estate
According to Savills, the value of the world’s real estate reached a record USD 280 trillion at the end of last year. Crucial to investment and pension funds as well as commercial and residential property incomes, prudent property owners should prioritise protecting their largest assets and environmental liability is a significant element of this.
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Head of Environmental
Whilst standard property and casualty policies offer coverage for traditional perils, there remains a significant risk posed to property owners and their potential to be held accountable for their own (as well as their tenants’) actions.
Exposures and incidents can arise through building upgrades and improvements; HVAC & facilities management operations; tenant abandonment and/or illegal operations; illegal waste and fly tipping; failure of site infrastructure; loss of rent and increased costs of working; third and first party damages and bodily injury claims. We can provide environmental insurance for the real estate industry.
WHAT WE DO
If a company has not undertaken any environmental due diligence, we can advise on the types of surveys required and what its contaminated land liabilities might be.
The next step would be to assess the company’s
environmental due diligence to determine whether it is satisfactory for underwriting purposes.
A pollution ‘bolt on’ may not cover all the client’s exposures during the transaction and most transactions are not assessed by an insurer with a dedicated environmental practice.
Where the information and delineation of existing contamination is available, we have been successful in securing coverage for known contamination.
Regulators have the right to remedy damage and pass on the cost of such remediation to the ‘polluter’. In the event that the polluter cannot to be found, the landlord will be ultimately responsible.
We can liaise directly with
estate management companies to ensure a suitable programme is in place to ensure returns on investment are maintained and risks to a property portfolio are suitably covered. Key Facts
Companies see environmental exposures as one of their biggest emerging risks and our global team have the underwriting, engineering, consulting, claims and wordings expertise to provide market leading advice.
This expertise has resulted in a 200% increase in the level of environmental placement in 2017-2018. This has been matched by a doubling in size of the environmental specialist team, which has access to GBP 400 million of environmental capacity in Lloyds and London markets.
Our specialist knowledge of key industry areas is complimented by strong and diverse relationships across the specialty insurance market and access to traditional and emerging markets through the JLT International Network.
We work closely with clients to structure a policy that mirrors their risk profile and transfers the appropriate level of risk to the right insurer.
Additional services include:
Programme gap analysis - identifying coverage gaps in existing programmes, discussing how these could impact a business and the extent to which they can be covered
Global programme advice - including where legal and regulatory regimes may require local policies or heightened environmental due diligence
Risk solutions - through our engineering team, we are able to provide fee-based surveys and advice to support clients in reducing programme premiums
Claims liaison and support - our claims advocacy team have experience across a number of complex environmental claims, ensuring the best interests of our clients are represented.