Environmental liability insurance market takes off as regulators crack down on pollution

Source: http://www.liveinsurancenews.com, November 23, 2018
By: H. Cutner

As standard property or general liability policies don’t cover enough, pollution coverage is increasingly common.

Environmental liability insurance is rapidly growing in popularity as exposures have grown beyond the coverage from general liability and standard property policies.

Claims relating to pollution and the environment are frequently complex as well as expensive.

The complexity and cost relating to issues relating to pollution have sent underwriters to step away from risks relating to pollution. This has left a gap open for environmental liability insurance products to fill. The market in many countries is expanding, including that of Canada, where the increase has been very rapid.
The pollution coverage has moved from its former position as a niche market that was geared nearly exclusively to the oil and gas industry as well as chemical manufacturers. Now, it has expanded into a far more mainstream position. The growth was greatly driven by amped up environmental regulation which has increased liability exposures.

As companies face more exposures, environmental liability insurance has become more important.

“People are definitely buying more pollution insurance coverage, which is largely due to heightened regulation combined with stricter financing requirements from banks and investors,” said environmental underwriter Miles Foxworth from Beazley Canada in an Insurance Business report.
“If a company is refinancing or trying to get a loan for a property, a bank won’t want to take on any pollution exposure and so will require the company to have pollution coverage in place before offering any funding,” said Foxworth. At the same time, individuals and companies alike shopping for property are seeking pollution liability coverage, particularly if they plan to build on that property, he added.
Similarly, large property developers frequently seek out environmental insurance coverage before they break ground on a project. Contractors will also sometimes buy a pollution insurance policy as some are not permitted to begin on site until they have arranged for coverage.
Still, even as environmental liability insurance grows in popularity, Foxworthy underscored that education regarding the exposures and the coverage is still lacking on the whole. He referred to education as the “consistent number one challenge” this type of product faces when it comes to widespread adoption.

Find a Broker or Underwriter

Search by product, location or name
SEARCH BY PRODUCT
---
Agribusiness
Aviation
Binding Authority
Builder's Risk
Casualty
Commercial Umbrella / Excess
Construction
Cyber
DIC
Defense Based Act
Earthquake
Energy
Environmental
Environmental & Construction Professional
Excess
Farm & Ranch
Flood/Earthquake
Garage
Healthcare
Healthcare
Inland Marine
Life Sciences
Marine
Occupational Accident
Package
Personal Lines
Personal Lines Farm & Ranch
Personal Lines – QuickHome
Personal Standard Lines
Personal Umbrella / Excess
Pollution
Private Client
Private Equity
Product Recall
Professional & Executive Liability
Property
Public Entity
Railroad
Real Estate
Shared Economy
Standard Lines
Surety
Surety
Transactional Liability & Private Equity
Transportation
Workers' Compensation
SEARCH BY LOCATION
---
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District Of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
https://www.insurancebusinessmag.com/us/best-insurance/best-wholesale-brokers-usa--5star-wholesale-brokers-and-mgas-478736.aspxhttps://www.newsweek.com/rankings/most-loved-workplaces-2024https://premium.insurancebusinessmag.com/us-iba-top-insurance-employers-2024-ryan-specialty/p/1

Please Update Your Browser

Unfortunately Microsoft is no longer providing support or security fixes for your web browser. RT Specialty values the safety and security of its clients’ data, and as such this site requires the use of a modern web browser. To update your web browser, please see the links below. If you have any questions or would like additional information, please email info@rtspecialty.com or call (312) 784-6001.

Firefox Firefox Chrome Chrome IE Internet Explorer Edge Microsoft Edge