Article date: 15 March 2011
Businesses engaged in the environmental goods and services sector could benefit from a new range of covers from Aviva.
From March, Aviva will expand its engineering, marine, construction and operational risks cover for onshore wind, solar and energy from waste power generation, including biomass energy production, environmental consultancy and building technologies.
A range of covers are now available to suit the diverse and broad nature of this sector, with potential policyholders ranging from small companies using a single solar panel to national onshore wind farms.
Yawar Choudhry, commercial product consultant at Aviva, said: “The environmental goods and services sector is worth £107 billion in the UK1, and involves over 55,000 businesses across sectors such as construction, manufacturing, design, architecture and consultancy. It is much larger and has greater economic and employment impact than is generally recognised.
“As incentives to lower emissions develop, the sector is forecast to increase in value by up to £45 billion by 20151. Aviva has the capability to support the increased focus in the UK on harnessing renewable energy, lowering carbon emissions and achieving compliance with environmental regulations.
“For example, a landowner under a traditional commercial policy may decide to install a wind turbine on his property to sell energy to the electricity grid. Aviva can now cover every aspect of the project, from marine transit if the wind turbine is imported from abroad, through to construction and operation once the turbine is built.”
Cover is also available for those working in environmental consultancy, in areas such as land remediation, geological surveying, pollution control and environmental monitoring. As local councils tighten environmental regulations on building technologies, brokers may find this cover will be increasingly relevant for designers and architects, and specialist window and door manufacturers and installers.
Public liability cover will now include failure to supply power (up to £1 million), and cover for any reduction in the value of property (up to £1 million) due to exposure of electromagnetic radiation or electromagnetic fields. Professional indemnity cover is also available for environmental consultants, up to the value of £5 million.
Choudhry continued: “Aviva can now offer a range of covers for businesses working in the environmental goods and services sector. This saves brokers the administrative burden of placing multiple policies with more than one insurer.”
The news follows a recent Carbon Trust survey of UK business leaders which found that 92% believe “green growth” represents an opportunity for their business2.
Harry Morrison, general manager at the Carbon Trust Standard, said: “Aviva’s step into the environmental goods and services market is further evidence of growth in the green economy. This new initiative follows Aviva’s success in 2008 in becoming the first UK insurer to be awarded the Carbon Trust Standard for managing, measuring and reducing the company’s carbon footprint across its UK operations.”
Zelda Bentham, group senior environment manager at Aviva, said: “We are pleased that the launch of our covers resonances so well with the recommendation included in the Carbon Connect report. This follows the government inquiry co-chaired by Lord Teverson calling for insurers to develop such solutions for renewable energy projects."
A recent audit of the top 100 UK companies by The Environmental Investment Organisation (EIO) ranked Aviva second place overall3. The EIO measures carbon intensity, which is calculated using the ratio of carbon emissions to turnover.
Brokers can visit www.aviva.co.uk/broker to find out more about Aviva’s extended cover for the environmental goods and services sector.
For further information, please contact:
Sally Leeman: Aviva Press Office
01603 684225/07789 270677
0161 919 8011
Notes to editors:
1 Department for Business, Enterprise and Regulatory Reform (BERR) Report, March 2009
3 Full listings available at www.eio.org.uk/etindex.php?page=rankings_tables. Aviva emits 1.36m tonnes of carbon dioxide per $m of turnover.
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