Environmental Insurance

Environmental Insurance policies provide cover to offset financial loss arising from historic, ongoing or future liabilities in relation to specific known and unknown pollution events and contaminated land risks.

Environmental Insurance insures the actual property or activity itself rather than the warranty or indemnity that might be given in a transaction. On a transaction where warranty and indemnity (W&I) Insurance is being used, it is likely that environmental issues / pollution / contamination etc. will be excluded under the policy and so we might look to Environmental Insurance to bridge the gap. Note that the liability here is nothing to do with the transaction itself – the insurable risk lies in the property itself.

Under an Environmental Insurance policy, the policyholder can claim for the damage caused by the environmental issue i.e. the clean-up costs but they can also claim for loss of business of not being able to operate on that site. The insurer will analyse the risk of the chance of there being pollution at the property and the damage it could cause over a 10 year period.


The BMS Private Equity, Mergers & Acquisitions and Tax team will work with you to ensure that the Environmental Insurance process works as efficiently as possible, either on a standalone basis or if required as part of the M&A transaction timeline alongside W&I Insurance to ensure the most effective solution is placed.

Environmental Insurance policies can be put in place quickly and efficiently due to the nature of the underlying risk and the expertise in the market.

  • If environmental due diligence is available then the insurers will want to see these reports
  • We can provide a desktop quote providing a high level view of coverage available for the type of risk
  • We will collate all publically available information relating to the property to share with the insurers
  • Insurers may require an interview with the due diligence consultants on more complex issues
  • Full quotes from the market can be obtained in under a week
  • An Environmental Insurance policy can be finalised in short order


The premium is rated based on the risk profile of the property or site involved. There are various factors which will affect this rate such as the nature and jurisdiction of the property, the size of the policy limit being purchased and the extent of the contamination. These variables will be discussed at the outset of the enquiry and the one-off premium will be payable once the policy has incepted. An Environmental Insurance policy will usually last for 10 years from inception.


  • If a seller initiated W&I insurance process, then early engagement to obtain Environmental Insurance quotes will allow certain environmental issues to be ring-fenced and dealt with off the deal table which allows for smoother negotiations and greater transparency with the buyer
  • Insurers with excellent security ratings can provide recourse in the event of contamination thereby mitigating the risk profile of the property
  • Environmental Insurance policies are available for properties all over the world


  • Fines and penalties
  • Pollution discovered by a voluntary site investigation or redevelopment
  • Loss arising from change of use
  • PFAS and associated compounds contamination is becoming more of a challenge
Pawar Tan

Tan Pawar

Head of Private Equity and M&A

T: +44 (0)20-7480-0264
M: +44 (0)7341-133-007
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Andrews Dean

Dean Andrews

Head of Tax Liability Insurance

T: +44 (0)20-7480-0308
M: +44 (0)7876-815-643
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Wallace Sophie

Sophie Wallace

Divisional Director

T: +44 (0)20-7480-0378
M: +44 (0)7824-605-613
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Leitch Harry

Harry Leitch

Director, Head of Deal Origination

T: +44 (0)20-7480-0346
M: +44 (0)7770-990-368
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Kemp Simon

Simon Kemp

Group General Counsel

T: +44 (0)20-7480-7288
M: +44 (0)7825-844-988
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Marcus Christie


T: +44 (0)20-7374-5937
M: +44 (0)7826-532-908
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Simon stephan

Stephan Simon

Head of W&I Insurance – UK

M: +44(0)7785-720-944
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Kanwar Chandini

Chandini Kanwar

Associate Director

T: +44 (0)20 7374 5990
M: +44 (0)7825 421 394
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One America Square
London EC3N 2LS
United Kingdom

T: +44 (0)20-7480-7288

Stone Jason

Jason Stone

Managing Director, Canada

M: +1 416-845-4572
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Allen logan

Logan Allen


M: +1 416-722-8171
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1 University Ave,
Toronto, ON M5J 2P1

Lee Sandra

Sandra Lee

CEO & Head of PEMAT, Asia

T: +852 3579 5485
M: +852 9255 7088
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De Lange Martijn

Martijn de Lange

Managing Director

T: +852 3579 5486
M: +852 9772 9951
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Wong Aris

Aris Wong

Managing Director

M: +65 8321 6236
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Sagar Mehta

Associate Director

M: +65 8010 2687
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Swee Faith

Faith Swee

Senior Associate

M: +65 8949 3439
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Jessica Xi

Senior Associate

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M: +852 6713 1883
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Ryan Heng

Senior Associate

M: +65 8792 6334
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Yongtak Lee

Yongtak Lee

CEO & Managing Director

T: +82 2 6405 1021
M: +82 10 3110 2807
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Kim Tamara

Tamara Kim

Chief Legal Officer & Senior Director

M: +82 10 7365 4628
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Kaylee Kim


T: +82 2 6405 1021
M: +82 10 7106 1709
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Cha Chloe

Chloe Cha

Senior Associate

T: +82 2 6405 1021
M: +82 10 7164 7071
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Jayasundara Nelumi

Nelumi Jayasundara


M: +852 9801 3916
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Cho Wooyoung

Wooyoung Cho

Junior Associate

T: +82 2 6405 1021
M: +82 10 7120 1827
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138 Market Street #05-01,
Singapore 048946

T: +65 9384 6484

Hong Kong

4/F, Lee Garden Three,
1 Sunning Road,
Causeway Bay, Hong Kong


#1908 19Fl., S Tower Bldg.,
82 Saemunan-ro, Jongno-gu,
Seoul, South Korea

T: +82 2-723-1800

Godden Andrew

Andrew Godden

Chief Executive Officer - Australia

T: +61 (2) 9165-3502
M: +61 (0) 432-805-729
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Level 3,
222 Clarence Street,
Sydney NSW 2000

T: +61 (2) 9165-3500

Claro Fernando

Fernando Claro

Chief Executive Officer, Iberia

T: +34 91-419-76-30
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c/ Serrano, 240. Planta 5
28016 Madrid

T: +34 91-419-76-40

Astorqui Jose

Jose H. Astorqui

CCO, Latin America & Caribbean

T: +1 786-581-1899
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Miami (US)

800 Brickell Avenue
Suite 350, Miami, Florida 33131

T: +1 786-581-1896