The ACE Group today announced the release of a white paper exploring the importance of identifying environmental risk exposures as businesses expand their global operations. The report explains that businesses are exploring new markets and new global business opportunities and suggests that environmental exposures are a key consideration. By understanding the environmental challenges, businesses can take measures to protect their investments and reputations by securing appropriate insurance coverage.
“Protecting Against Environmental Risk in the Global Marketplace,” was authored by Craig Richardson, Senior Vice President, ACE Environmental Risk; Karl Russek, Senior Vice President, Environmental, ACE Overseas General; and Frank Westfall, Vice President, ESIS Health, Safety and Environmental Services. Mr. Russek commented, “This report has been developed to help businesses understand the potential environmental regulatory risks involved when opening or expanding their global operations. One of our main goals is to support companies in protecting their reputations and business operations by running their global operations in accordance with local environmental laws and also global best practices.”
Additionally, the report discusses the importance of understanding and making sure businesses have the right environmental insurance coverage in place. According to Mr. Richardson, “Companies need to be cognizant and protect their investments from potential pollution incidents and exposures. In some instances, companies expect that a pollution incident that may damage their property is covered under a standard umbrella or commercial general liability insurance program. In most cases pollution exposures are excluded on those programs, and companies need to consider premises pollution policies that provide coverage for the first-party costs of environmental remediation as well as the potential third-party liabilities arising from on-site incidents.”
The report also discusses working with the appropriate resources on environmental assessments including regulatory and operational controls. Mr. Westfall added, “While operations in other countries can create significant growth opportunity, they often require stricter due diligence. To evaluate any future potential environmental exposures, companies should seek out experts who have experience in evaluating and mitigating overseas environmental, health and safety exposures. These experts can provide a broad perspective as well as specific guidelines businesses must meet to maintain compliance with current regulations.”