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

Tan Pawar Global Head of Private Equity and M&A

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M: +44 (0)7341-133-007
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Dean Andrews Head of Tax Liability Insurance

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Sophie Wallace Divisional Director

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Harry Leitch Director, Head of Deal Origination

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M: +44 (0)7770-990-368
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Simon Kemp Group General Counsel

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Marcus Christie M&A Insurance Analyst

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Jessica Bradley Associate Director

T: +44 (0)20-7374-5109
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