Businesses and organisations with exposures in the industry face a number of key challenges, including an increasingly competitive marketplace, increased legislation and the impact of technologies such as artificial intelligence on autonomous vehicles - and the liabilities which may follow.
According to the report Logistics Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023, the global logistics market was worth almost USD 1.2 trillion in 2017.
Land, sea and air-based operations present a number of scenarios with the potential to give rise to an environmental liability.
Both logistics companies and those who rely on them as part of their operations should understand the potential environmental liability attaching to their activities, as well as the solutions available to avoid uninsured losses.
WHAT WE DO
Integrated rail, road and air facilities are becoming more prevalent and clients should consider their potential business interruption exposure should their operations impact on the functioning of a third party’s distribution network.
Aviation wordings must provide limited compulsory pollution coverage provided this is caused by a crash, fire or explosion or regarded as an in-flight emergency.
In terms of the wider ancillary services surrounding aviation, coverage remains limited and does not account for supplementary services associated with air transport which are more likely to give risk to an incident.
Marine and port operators should carefully consider the potential impact a pollution event could have on their business reputation and the third party property damage which may arise in the event of an incident.
Alongside our industry practice group specialisms, we have vast expertise within the transport sector and can partner with both clients and insurers to deliver a broad and appropriate solution to reduce the likelihood of uninsured losses.
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.