Managing Environmental Risks through Insurance: Legal and Economic Aspects

Contents
Law and Environment. Prevention, Control, Responsibility
	1 Preliminary Assumptions: First, Civilisation
	2 The First Industrial Revolution: The Beauty of Machines
	3 The Second Scientific and Technological Revolution: Between the Beauty of Provocation and the Beauty of Consumption
	4 The Third Information Revolution: Beauty on the Web
	5 The Birth of Technological Civilisation: Beautiful Experiments
	6 Final Conclusions: The Cry of Humanity
	References
Part I: Overview of the Environmental Liability and Insurance Regulations
	Global Governance of the Environment and Implications for the Insurance Industry
		1 Introduction
		2 The International System Under Which Business Operates
			2.1 The WTO Regime
			2.2 International Investment Law
			2.3 Corporate Law
		3 The Changing Face of Responsibility for Businesses
		4 The Re-design of International Environmental Governance and the Role of the Insurance Industry
		5 Conclusion
		References
	Environmental Liabilities and Insurance Law in the European Union
		1 Introduction
		2 Environmental Liabilities
			2.1 Tort Law
				2.1.1 Consequential and Pure Economic Loss
				2.1.2 Standard of Liability
				2.1.3 Scope of Liability
				2.1.4 Remedies
				2.1.5 Limitations Periods
				2.1.6 Liability Systems Specifically for Environmental Damage
			2.2 Remediation of Historic Contamination
			2.3 Remediation of Current and Future Environmental Damage
				2.3.1 Environmental Permitting Legislation
					2.3.1.1 Industrial Emissions Directive
					2.3.1.2 Seveso III Directive
					2.3.1.3 Waste Framework Directive
					2.3.1.4 National Environmental Permitting Legislation
			2.4 Environmental Liability Legislation
				2.4.1 Environmental Liability Directive
				2.4.2 National Environmental Liability Legislation
		3 Insurance for Environmental Liabilities
			3.1 Providers of Environmental Insurance
				3.1.1 Commercial Insurers
				3.1.2 Re/Insurance Pools
				3.1.3 Mutuals
				3.1.4 Captives
			3.2 Environmental Extensions
				3.2.1 General Liability Policies
					3.2.1.1 Pollution Exclusions
					3.2.1.2 Environmental Extensions
			3.3 Property Policies
				3.3.1 Pollution Exclusions
				3.3.2 Environmental Extensions
			3.4 Environmental Insurance Policies
				3.4.1 Evolution of the Environmental Insurance Market
				3.4.2 Types of Cover
				3.4.3 Availability and Demand
		4 Mandatory Financial Security Requirements
			4.1 European Union Legislative Requirements
			4.2 National Legislative Requirements
				4.2.1 National Legislation Implementing EU Legislation
				4.2.2 Waste Management Legislation
				4.2.3 Other Civil and Remediation Liabilities
				4.2.4 Environmental Liability Directive
					4.2.4.1 Spain
					4.2.4.2 Portugal
					4.2.4.3 Slovakia
					4.2.4.4 Czechia
					4.2.4.5 Ireland
					4.2.4.6 Italy
					4.2.4.7 Poland
		References
			Cases
			Legislation
			Other Governmental Documents
			Books
			Articles
			Reports
	Environmental Liabilities and Insurance Law in the United Kingdom
		1 Introduction
		2 Common Law
			2.1 Private Nuisance
			2.2 Public Nuisance
			2.3 Rylands v Fletcher
			2.4 Negligence
			2.5 Trespass
			2.6 Statutory Nuisance
		3 Legislation that Imposes Environmental Liabilities
			3.1 Devolution
			3.2 Transposition of EU Legislation
			3.3 Brexit
			3.4 Legislation that Imposes Environmental Liabilities
				3.4.1 Environmental Permitting Legislation
				3.4.2 Water Pollution Legislation
				3.4.3 Waste Removal Notices
				3.4.4 Environmental Liability Directive
				3.4.5 Restoring Damage to Nature
				3.4.6 Contaminated Land Regime
		4 Rules of Construction of Insurance Policies
		5 Insurance for Environmental Liabilities
			5.1 Pollution Exclusions in Public Liability Policies
			5.2 Cover for Costs of Remediation Measures in Public Liability Policies
			5.3 Environmental Extensions and Endorsements to Public Liability Policies
			5.4 Cover for `Requests´ by a Competent Authority for an Insured to Carry Out Remediation Measures
			5.5 Timing of an Occurrence
		6 Environmental Insurance Policies
			6.1 Evolution of the London Environmental Insurance Market
			6.2 Environmental Endorsements and Extensions to Public Liability Policies
			6.3 Environmental Insurance Sections in Combined Policies
			6.4 Environmental Insurance Policies
				6.4.1 Pollution Legal Liability Policies
				6.4.2 Contractors Pollution Liability Policies
				6.4.3 Environmental Consultants´ Professional Services Policies
				6.4.4 Contaminated Land Policies
		7 Mandatory Financial Security Requirements
		Cases
		Legislation
		Other Governmental Documents
		References
			Article
	Managing Environmental Risk Through Insurance: China
		1 Introduction
		2 Insuring Environmental Risk
			2.1 The Insurability of Environmental Risk
			2.2 The Mechanism of Insurance to Cover Environmental Risk
			2.3 Insurance (and Potential) Products for Environmental Risks
		3 Insurance Compensation for Environmental Damage
			3.1 Environmental Insurance Market Development: Law and Policy
		4 Theoretical Analysis of Environmental Insurance Compensation
		5 Insurance as Governance for Environmental Risk
			5.1 Regulation by Insurance in Managing Environmental Risk
			5.2 Statutory of Rules for Risk Control and Regulatory Techniques of Environmental Insurance
		6 Challenges of Environmental Insurance and Potential Proposals
			6.1 Difficulties of Environmental Insurance Compensation and Governance
			6.2 Mandatory Environmental Insurance
		7 Public-Private Partnership
		8 Conclusion
		References
	Environmental Liabilities and Insurance Law in the United States
		1 Introduction
		2 Environmental Liabilities
			2.1 Common Law
				2.1.1 Nuisance
				2.1.2 Rule in Rylands v Fletcher and Liability for an Abnormally Dangerous Activity
				2.1.3 Negligence
				2.1.4 Trespass
			2.2 Remediation of Pollution
				2.2.1 Environmental Permitting
				2.2.2 Comprehensive Environmental Response, Compensation, and Liability Act
					2.2.2.1 Clean-up Costs
					2.2.2.2 Natural Resource Damage
		3 General Liability Policies
			3.1 Types of General Liability Policies
			3.2 State Regulation of Insurance
			3.3 State Insurance Law
			3.4 Pollution Exclusions
				3.4.1 Commercial General Liability Policies
				3.4.2 Excess General Liability Policies
			3.5 Claims for Past Pollution
				3.5.1 Duty to Defend Administrative Proceedings
				3.5.2 Duty to Indemnify and a Legal Obligation to Indemnify
				3.5.3 Clean-up Costs As Damages
				3.5.4 Timing of an Occurrence
				3.5.5 ISO Qualified Pollution Exclusion
				3.5.6 NMA 1685
				3.5.7 Absolute and Total Pollution Exclusions
		4 Environmental Insurance Policies
			4.1 Evolution of the Environmental Insurance Market
			4.2 Types of Environmental Insurance Policies
				4.2.1 Pollution Legal Liability Policies
				4.2.2 Contractors´ Pollution Liability and Professional Liability Policies
				4.2.3 Environmental Consultants Professional Service Policies
				4.2.4 Cost Cap Policies
				4.2.5 Lender Liability Policies
				4.2.6 Owner/Contractor Controlled Environmental Insurance Programmes
				4.2.7 Finite Risk Policies
		5 Mandatory Financial Security Requirements
			5.1 Mandatory Financial Security for Environmental Responsibilities and Liabilities
			5.2 Types of Mandatory Financial Security Instruments and Mechanisms
			5.3 Main Financial Security Requirements
				5.3.1 Transportation of Hazardous Materials
				5.3.2 Hazardous Waste Treatment, Storage and Disposal Facilities
					5.3.2.1 Environmental Responsibility Requirements
					5.3.2.2 Environmental Liability Requirements
					5.3.2.3 Non-hazardous Waste Facilities
					5.3.2.4 Underground Storage Tanks
					5.3.2.5 Remediation of Contamination
		References
			Cases
			Legislation
			Other Governmental Documentation
			Report
			Books
			Articles
	Environmental Civil Liability in the Mercosur Region South America
		1 Argentinian Republic: Environmental Civil Liability
			1.1 Introduction
			1.2 Environmental Damage
				1.2.1 The Role of the Judge in the Environmental Process
				1.2.2 Sanctions for Environmental Damage
				1.2.3 Condemnation Against Collective Damage
			1.3 Environmental Protection
				1.3.1 The Preeminence of the Precautionary Principle
				1.3.2 The Role of the Judge in Environmental Protection
			1.4 State Responsibility for Damage to the Environment
				1.4.1 Environmental Prevention
				1.4.2 Prevention and Cessation of Damage
				1.4.3 Preventive Claim of Environmental Damage Itself
			1.5 Environmental Liability Insurance
				1.5.1 Characteristics of Environmental Damage
				1.5.2 Types of Insurance
				1.5.3 Law No. 25,670: Minimum Budgets for the Management and Elimination of PCBs
				1.5.4 Law No. 25,675: General Environmental Law
				1.5.5 Leading Cases
				1.5.6 Insurance Features
				1.5.7 Environmental Damage and Insurance Activity
		2 The Republic of Chile: Brief Review on Some Topics Related to Environmental Responsibility in Chilean Legislation
			2.1 Concepts
			2.2 General Rules on Civil Liability Derived from Environmental Damage
				2.2.1 The Victim
				2.2.2 Responsibility of a Subjective Nature
				2.2.3 The Causal Relationship in Environmental Damage
				2.2.4 Prescriptio No Faction: Exception to the General Rule
			2.3 Procedural Legal System in Case of Environmental Offenses
		3 Environmental Civil Liability in the Eastern Republic of Uruguay
			3.1 Environmental Constitutional Protection
			3.2 Environmental Impact Assessment Law
			3.3 Environmental Damage
			3.4 Objective-Subjective Liability
			3.5 Procedural Legal System
			3.6 Urgent Consideration Law No. 19,889 and the Environment
			3.7 Standard on Environmental Responsibility
		References
Part II: The Practice of Insurance Coverage of the Environmental Risks
	Environmental Insurance Product
		1 Environmental Risk: Notion
		2 Environmental Insurance Product: Structure
		3 The Origins of Environmental Insurance: Historical Approach
		Legal Documents
		References
			Websites
	Prevention in Environmental Insurance
		1 Introduction: Prevention in the Regime of Liability for Environmental Damages
		2 Insurance as a Prevention Tool
		3 Environmental Insurance Prevention and New Technologies
		4 Risk Prevention in Insurance Law
			4.1 Insurance Solvency Regulations
			4.2 Environmental Sustainability Governance and Insurance Prevention
			4.3 Communication Between the Parties and Transparency as a Prevention Tool
			4.4 Precautionary Duties of the Parties in Insurance Contract
		5 Prevention and Mitigation Clauses in Environmental Insurance Contracts
		6 Conclusions
		References
	Loss Adjustment in the Environmental Insurance and the Role of the Loss Adjuster
		1 Introduction
		2 Loss Adjustment Process
			2.1 The First Response
			2.2 The Cause and Authorities
			2.3 Nature and Extent of Damage
			2.4 Remediation Plan
			2.5 Geotechnical and Hydrological Investigations
			2.6 Baseline and Biotope Investigations
		3 Primarily, Complementary and Compensatory Remediation
			3.1 The Remediation Operation
			3.2 The Compensatory Remediation
			3.3 Recovery of Insured and Uninsured Cost
		4 Conclusions
		References
Part III: Specific Issues
	Liability for Wastes and Its Insurance
		1 Introduction
		2 Waste Risks
			2.1 Wastes and By-Products
			2.2 Hazardous Waste
			2.3 Waste Management
		3 Principles Supporting the Development of Waste Insurance
			3.1 The Holder-Pays Principle as a Modification of the Polluter-Pays Principle
			3.2 Extended Waste Producer Responsibility Principle in EU Law
		4 Waste Insurance as Mandatory EU Financial Security
			4.1 EU Mandatory Financial Security Requirements
			4.2 Insurance Contract vs. Other Types of Financial Security
		5 Waste Risks as Insurance Risk in the USA: Ambiguous Wording
			5.1 Waste Risk as Content of Pollution Exclusion in Insurance Conditions: In the Light of Case Law
			5.2 Waste Risk in Environmental Insurance
		References
	Underwriting Environmental Risks for Carbon Capture Usage and Storage (CCUS) Coverage: Challenges and Best Practices Forward
		1 Introduction
		2 Climate Change and International Legal Regulatory Instruments: Brief Overview and Correlation with CCUS
		3 Assessment of Underwriting Coverage for CCUS Operations: The Risks Involved and the Coverage to Be Obtained
		4 Assessment of CCUS as a Solution to Mitigate Climate Change
		5 Solutions for Broader Insurance Coverage for CCUS
		6 Conclusions
		References
	Liability for Environmental Damages in Aviation
		1 Introduction
		2 International Regulations
		3 National Responsibilities
		4 Environmental Liability: Case Studies
		5 Concluding Remarks
		Websites
		References
	Liability for Environmental Damage in Outer Space and Its Insurance
		1 Introduction
		2 Basic Notions and Concepts
			2.1 Outer Space Environment
			2.2 Damage to the Environment of Outer Space
		3 Liability for Damages in the Outer Space Environment: International Framework
			3.1 Outer Space Treaty (OST)
			3.2 Liability Convention (LC)
			3.3 Registration Convention (RC)
			3.4 UN Resolutions
		4 European Union and European Space Agency Tools for Protecting the Outer Space Environment
			4.1 Code of Conduct
			4.2 EU Space Programme
		5 National Space Laws
			5.1 Bottom-Up Universalism on the Level of Principles?
			5.2 Technical Requirements and Guidelines
		6 Space Insurance as a Tool for Incentivizing the Protection of the Outer Space Environment
		7 Conclusions
		References
	Liability for Pollution Damage to the Marine Environment
		1 Introduction
		2 Marine Environment
		3 Pollution of the Marine Environment
		4 Damage to the Marine Environment (Environmental Damage)
		5 Liability for Damage to the Marine Environment
		6 Liability and Compensation for Ship-Source Pollution
			6.1 International Liability and Compensation Regime
			6.2 Preventive Measures
			6.3 Shipowner´s Liability
			6.4 Compulsory Insurance
		7 Marine Pollution Insurance
		8 Protection and Indemnity Clubs
		9 Conclusions
		References