Environmental insurance for construction

A study conducted by Global Construction Perspectives and Oxford Economics recently estimated that the value of construction output would grow by 85% to USD 15.5 trillion worldwide by 2030.

With continued growth in the industry, there has been increased scrutiny of the negative environmental impact of construction with the industry regularly cited as one of the worst performers across water, air and third party property polluters.

Environmental cover is increasingly a prerequisite within contract tenders as well as being regularly requested by construction firms and contractors. One of the main drivers for this change has been the unexpected financial impact incidents have had on the timely delivery of projects, and the unprecedented remediation costs that have fallen onto developers as a result of such incidents.

As awareness of these issues increases globally, legislative and contract requirements are expected to become more onerous.



In conjunction with our construction team we have supported solutions for projects and group annual policies of all type of operation, working with property developers, operations and maintenance contractors and remediation specialists.

We have provided solutions for a range of projects types from national infrastructure (road, rail, ports, airports, water supply, sewerage) and international energy projects such as power stations, trans-national interconnectors and pipelines to offshore projects (wind farms, platforms, telecoms) and single site constructions of varying scale.

Some of the key exposures for contractors to consider include the use of raw materials, chemicals and fuels transported to site(s) and the use and storage of raw materials, chemicals and fuels on site.


Failure of site equipment and processes leading to release and the potential for run-off into the surrounding environment and third party property should also be considered,

Alongside disturbance of pre-existing contamination through sub-surface excavations and structures, accidental incidents at third party premises through operations and maintenance contracts and potential third party business interruption expense as a result of a pollution release event should also be considered.

JLT can perform a full analysis of projects and operations to ensure clients are partnered with suitable insurers, avoiding any uninsured loss and negative reputational impact this may have in regards to a company’s ability to deliver on a project.

Key Facts

200% Increase in the level of environmental placement in 2017-18GBP 5 Million + placed into the London market400 million+ environmental capacity accessible in the London marketsOne of the largest environmental broking teams in London


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.
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