Environmental Risk

Identifying Environmental Risk

It’s important your clients are aware of the potential environmental risks, the protection available to them and what to do should the worst happen.

If your clients do any of the following, there’s potential for environmental risk:

  • Own, operate or buy and sell property
  • Operate on third-party premises
  • Use, store, transport or produce a substance that may cause contamination
  • Create solid, liquid or gaseous waste
  • Redevelop brownfield land

How does it happen?

  • A Source is the ‘cause’ of contamination and may relate to activity undertaken by the client’s business
  • A Pathway is the route the source takes to reach the receptor
  • A Receptor is the person, environment (air, land or water), property or eco-system that is impacted by a source


Where all three elements are present an environmental risk may exist.

The consequence may have substantial impact on a client's business and lead to financial, operational and reputational damage.

Chubb can protect clients from the impact of these consequences.

The potential impacts

Legislative

There are more than 250 pieces of legislation which have environmental implications. We can help you identify which are relevant for your clients.

Financial

Responsibility for cleaning up contamination rests with the polluter or in some instances, liability can attach to the current landowner. Environmental liability insurance provides a cost effective means of transferring this exposure, removing the impact from your clients’ balance sheets.

Reputational

Public and political awareness has grown, fuelling negative media attention and resulting in potentially serious long term brand damage.

Corporate Governance

Environmental liability is firmly on the boardroom agenda, fuelled by pressure to operate in a sustainable way and by the necessity to demonstrate environmental protection credentials as part of any tender process or CSR programme.