XL Catlin launches new environmental offering in Asia Pacific
Re/insurer XL Catlin has launched a new real estate environmental protection (REEP) solution in Asia Pacific.
The REEP policy is designed to help property portfolio owners, Real Estate Investment Trusts (REITs) and property investors deal with environmental liabilities that may arise as a result of owning or managing property, the company said.
It offers investors coverage for historic and new pollution conditions, both sudden and accidental as well as gradual pollution. The solution provides a comprehensive range of coverage from statutory clean-up orders, restoration, legal defense costs through to third-party property damage, bodily injury and business interruption.
Andrew Hookings, regional underwriting manager, environmental liability for XL Catlin’s insurance business in Asia Pacific, said: "While the 'Polluter Pays' principle tends to be enforced, property owners, real estate managers and developers may find themselves liable for issues they had little to do with or knew little about.
"Clean up and remediation can be highly disruptive, and may cost thousands or millions of dollars. This can be devastating to their businesses. The REEP policy seeks to provide clients with the broad coverage they need to protect their business."
According to the statement, besides providing standard environmental coverage, the REEP policy also includes enhanced coverage tailored to suit specific requirements. This may include broad definition of named insured, first-party business interruption and extra expenses, fines and penalties (where legally permissible to do so), disaster expense costs, changes in legislation, as well as mold and microbial matter including legionella.
"Pollution incidents are a big concern in the Asia Pacific region today," Adias Gerbaud, head of international environmental insurance, added. "Environmental exposures have been amplified by increasingly complex regulation, and a heightened awareness among the population who do not want to tolerate damage to the environment.
"We have seen the introduction of compulsory purchase of environmental insurance in South Korea, the increase in fines by ten-fold for New South Wales polluters and the Chain of Responsibility widening for polluters in Queensland in recent times. So it’s crucial for property owners and real estate managers to understand the exposures they face, have a comprehensive environmental risk management plan and the right insurance coverage in place to fence off unknown liabilities."
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