environmental insurance - gregor riese - alga oct 2015

Environmental Insurance

Gregor RieseProperty & Risk ManagerOneSteel Recycling

What are we talking about?Environmental Pollution Insurance – property owners and business operators*Other related insurances:• Contractors Pollution Liability –

companies working on third party sites• Professional Indemnity Insurance – for

consultants

What do they do?Designed to deal with pollution and waste issuesRelevant because:

environment legislation is changing cleanup costs are more onerous and expensiveexisting policies may give you no protectionpenalties higher

Mind the Gap

Existing general insurance products: - General Liability Policies- Industrial Special Risk You are not covered for a whole range of bad things that can happen* Case studies highlighting exclusions (eg pollution)

5

General Liability Policies vs. Environmental Policies

Gradual Release

StatutoryEmergency

Costs / preventative

Measures

Statutory Cleanup

of 1st party

property

Statutory Cleanup of

3rd party property

1st party business

interruption / economic

loss

Biodiversity Historic pollution

General Liability

NO NO NO NO NO NO NO

Environmental

YES YES YES YES YES (not as standard)

YES YES (not as

standard)

NSW EPA WebsiteAustralian Environment Business Network initiativeWho should consider having EPI cover?

Any business that uses or stores non-trivial amounts of chemicals or hazardous materials that could damage the environment or affect other people’s property should consider EPI cover as they run the risk of causing a pollution incident and incurring associated liabilities.

http://www.epa.nsw.gov.au/pollution/epi.htm

EPI and Property Transactions

How to get Environmental Insurance

How to get Environmental Insurance