Environmental liability, structuring & insurance

Advice on liability review, liability structuring and mitigation and the legal aspects of environmental insurance, including risk definition, insurance policies and claim litigation

Environmental matters, particularly contamination issues, are often unknown or difficult to assess and many become "deal breakers" in contract negotiations. The assessment of potential liabilities and selection of appropriate environmental risk transfer solutions are increasingly required to facilitate transactions, protect financiers and release shareholder value. Insurance often plays a key role in the risk transfer solution and we are well placed to advise on the legal aspects involved.

Our specialist environment lawyers are experienced in advising on all types of environmental liability and on the types of environmental insurance and other risk transfer solutions that can be put in place to protect against liability.

Our global team has local and cross-border experience in the following:

• Assessing potential environmental issues facing your organisation and legal liability implications and on the range of risk transfer mechanisms available.
• Advising on how to structure transactions to best mitigate or transfer environmental liability.
• Identifying when to put risk transfer mechanisms in place and assisting in selecting the appropriate mechanism during contract negotiations, e.g. warranties, indemnities and insurance or combinations of mechanisms.
• Assessing insurance policies already in place to determine the level of protection they offer and what additional risk transfer protection may be required.
• Maintaining close contacts with specialist brokers who have a thorough knowledge of the relevant insurance markets and available insurance providers.
• Negotiation of bespoke environmental insurance policies to cover any situation and assessment of any specific risks or gaps in the environmental policies. Advising on combining different types of risk transfer mechanisms to fill gaps.
• Advising finance parties and other third parties on protecting their interests in relation to insurance policies e.g. by having interests noted or becoming additional insureds.
• Innovation of novel environmental risk transfer and insurance solutions for certain scenarios, e.g. where contaminated land problems are particularly problematic: "pie-crust" leasing arrangements, sale and leasebacks, corporate restructuring.
• Negotiation of claims under environmental insurance policies and where necessary, litigation of such claims often involving complex legal and factual matters.

For more information on how we can help, contact a member of the Environment Group.