Advisen wrote a white paper that examines the environmental risk landscape, the risk management response, and the role of insurance in addressing environment risks. The free, 4-page paper is sponsored by Starr Companies.
Regulations including the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA or Superfund Act) and the Resource Conservation and Recovery Act of 1976 (RCRA) increasingly expose businesses with operations that could impact the environment to fines and penalties, civil liability, and criminal prosecution. Environmental contamination has been a focus of regulatory enforcement for decades, yet many companies, especially those from industries not traditionally perceived as environmental offenders, may be unaware of their potentially devastating exposure to environmental risks.
Responsible environmental corporate citizenship is increasingly seen as an important attribute of a company. Organizations with sound environmental risk management strategies not only reduce the possibility of a potentially serious environmental incident but also provide a safer environment for both customers and employees.
The role of insurance is increasingly recognized. A comprehensive environmental insurance program tailored to a company’s specific exposures and risk management objectives can bring value and positively impact a company’s bottom line.
Over the past thirty or so years, insurers greatly reduced their exposure to pollution-related claims by adding pollution exclusions to CGL and other policies such as E&O, D&O, and property.