A recent report from the United Nationals Industrial Development Organization highlighted the importance of manufacturing in providing an increasing variety of goods at prices that decline, relative to those in other sectors of the economy.
However, manufacturing also presents some of the most obvious environmental exposures, which span multiple industry sectors and segments. Any business with operations involving the use of bulk materials, chemicals, fuels, packaging, heavy process machinery or involved in the ‘added-value’ process of producing final products through assembly may have a significant potential pollution liability exposure which should be fully explored.
Particularly where water bodies are concerned, concealed site infrastructure is often the cause of losses through gradual pollution events, with costs further exacerbated by the ensuing legal action and long term remediation required.
Within specific sectors, the food and drink manufacturing industry has many avenues for which a pollution event could take place, with regulators having an equivalent raft of regulation to enforce. Any producer must factor in environmental coverage, concurrent to their main insurance program.
Pharmaceutical and chemical manufacturing also carries a number of hazards, heightening the environmental risk and probability of a pollution event. Even in a sector where most territories have increased license and permit requirements in force, the failure of secondary containment and control measures can lead to major pollution incidents and major losses.
WHAT WE DO
With firms of all sizes benefitting from the advent of globalization, it is critical for organizations to consider their operational risk, as well as factor in the varying legalities within their operating territories and the potential impact of environmental events on their supply chain and customer base.
Environmental policies can be tied to business operations, allowing for a combined property and operational risk solution covering business interruption, bodily injury, and crisis management, as well as clean-up, litigation, and defense coverage.
JLT partners with clients and insurers to provide cost-effective solutions for the most complex areas of risk. Our team of specialists has broad experience in metals recycling and processing plants; waste treatment facilities; food manufacturers and distributors; and global pharmaceutical companies, among other areas.
Pharmaceutical and chemical manufacturers must consider the potential impact their operation could have on their surroundings (both above and below ground), and their ability to deal with local regulators when handling a pollution event.
Another key consideration is the impact to persons through a potential contamination issue leading to bodily injury claims.
JLT has a track record of securing comprehensive coverage for manufacturers. Our environmental team is an important part of this offering and delivering innovative solutions to organizations seeking to avoid uninsured losses impacting on their operations and reputation.
Today, companies see environmental exposures as one of their biggest emerging risks. Our global team has the underwriting, engineering, consulting, claims, and wordings expertise to provide market-leading advice and deliver fit-for-purpose solutions for the most complex areas of risk.
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 our 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, as well as our access to traditional and emerging markets through the JLT International Network.
We work closely with our clients to structure a policy that mirrors their risk profile and transfers the appropriate level of risk to the right insurer.
Additional services include:
- Program Gap Analysis - Identifying coverage gaps in existing programs, discussing how these could impact a business, and the extent to which they can be covered
- Global Program Advice - Including where legal and regulatory regimes may require local policies or heightened environmental due diligence
- Risk Solutions - Through our engineering team, we provide fee-based surveys and advice to support clients in reducing program premiums
- Claims Liaison and Support - Our claims advocacy team has experience across a number of complex environmental claims, ensuring the best interests of our clients are represented.