Academy Workshop - Green is not always clean & You still need to “Mind the Gap”

In the push towards net zero and a more sustainable future, switching to a greener society also comes with its own environmental risks. As many of the potential losses attached to these risks aren’t covered by the standard property and liability policies, how can organisations best protect themselves?

It has become essential for businesses to examine the growing gap between their insurance cover and their environmental exposure.

Whether in the initial construction phase or during subsequent operation, renewable energy production is a risky business. Many of these risks are environmental in nature and a significant proportion of the potential losses, arising from onsite damage to the environment, aren’t covered by standard property and liability policies. These may leave policyholders footing bills that can often run to six and seven figure sums.

For instance, the construction of new wind farms and solar panels comes with significant challenges to biodiversity and floodplains.

Non-fossil fuels have the potential to reduce greenhouse gas emissions but carry pollution risks and are still prone to fire, spillage and leaks.

Electric vehicles’ engines don’t produce any emissions yet extensive mining is needed to manufacture the batteries which also presents an environmental risk

The future might be green, but it will only be clean if we carefully appraise the environmental risks associated with all types of commercial activity and put effective safeguards in place to both mitigate these risks and ensure access to effective remediation strategies when needed.

By the end of this session, you will be able to:

1. Summarise how to create awareness of environmental risks from “green” industries
2. Outline the “gaps in cover” between property and general liability cover (even with “bartoline extensions”)
3. Describe the specific benefits provided by Environmental Insurance, including emergency response costs, on/off site remediation, and biodiversity damage

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