Environmental liabilities present a growing risk to all businesses. As environmental regulation continues to develop around the world, companies are faced with a minefield of potential compliance issues, uninsured exposures and increasing accountability for their impact on the public and the environment.
Polluting incidents can have severe, immediate repercussions from both a financial and reputational standpoint.
Traditional general liability, directors and officers and property insurance policies are not designed to meet evolving demands from regulators in respect to environmental and pollution damage, nor do they provide the emergency and specialist assistance required to deal with an incident.
JLT’s experienced team of environmental specialists help businesses navigate the complex arena of environmental liability, ensuring rapid delivery of a tailored environmental programme when businesses need it.
Our experience in the market provides us with access to some of the best international insurers, who are able to deliver programmes anywhere in the world.
WHAT WE DO
Our team provides access to a full suite of specialist insurance products designed to protect organisations and their directors and officers against existing and emerging environmental risks and liabilities. Our products can be tailored to the specific exposures associated with any operation in both the public and private sector.
Where environmental liability is concerned, there are a number of potential areas where an organisation could be exposed to uninsured losses, including major business interruption costs, loss of profits, increased costs of working and loss of rent due to enforcement from a local agency as a result of lax environmental practices, an unfolding incident or poor management of such an incident. Business interruption, property and casualty policies greatly restrict the cover applicable to pollution-related claims.
Other areas of exposure include legal defence and mitigation costs incurred, for environmental or third party damage the business may not have caused:
- Cyber-attacks resulting in the failure of safeguard measures
- Unintentional damage to the environment through usual business operations posing a threat to protected habitats and land (under the European Liability Directive or equivalent local laws)
- Controlled waters and presenting an additional investigative burden upon directors and officers.
With access to first-hand experience of the London insurance market, we can leverage relationships to our clients’ benefit.
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.