Ed Ambrose, head of professional indemnity at RSA, discusses how the insurer is responding to developments for employees in the climate sector
1. What developments in the climate professionals sector led you to launch a PI product in this niche?
A focus on climate change and ESG-related issues amongst governments, regulators, companies and consumers continued throughout 2024 and looks set to continue in 2025 and beyond.
Growing reporting requirements, regulatory enforcement, shareholder activism and litigation risks are all increasing ESG liability risks for professionals.
With increasing legislation and regulation in this space, we can only see the need for expert consultancy to guide and advise growing.
Reviewing UK PI market offerings for this sector, we could not see a bespoke or innovative proposition, so it felt like an opportunity to create one.
2. Why should brokers be aware of these developments and how can they help to protect their climate professional clients?
As a society, we grapple with issues such as climate change and adaptation, sustainability and supply chains, waste and circular economy considerations, infrastructure development, oceans and species protection – to name just a few.
Environmental law continues to evolve rapidly. Just focusing on the built environment and sustainability, there are at least 14 separate legislative acts to be considered when undertaking a project.
Green jobs are rapidly increasing as part of the UK workforce – in 2022, the Office for National Statistics estimated at 639,400 full time employees – and represent a sector that is complex, diverse and growing in economic as well as societal importance for protecting our futures.
Throughout the development of this product, our thinking has been proposition rather than just policy wording. The question was how can RSA best protect and support the sector?
To that end, we have launched a proposition that we believe to be pioneering in providing both bespoke cover and sector specific knowledge share wrap around.
3. Who is this product targeted at and what does it cover?
Professionals whose roles and responsibilities are focused exclusively upon addressing climate change impacts upon an organisation’s operations, as well as professionals charged with addressing sustainability and environmental issues related to an organisation’s operations. Examples of what would be in appetite include biodiversity and ecological consultants, net zero consultants, sustainability or climate consultants and environmental engineers.
Cover provides protection for climate professionals in respect of civil liability for damages and claimant’s costs and expenses incurred in connection with their work with added additional extension clauses for public relations costs, mitigation of losses, investigation costs and prosecution defence costs.
4. How much have increased regulations around climate requirements for companies impacted on climate professionals?
To give one example, an interesting legislative development from February 2024 is the UK Government’s introduction of biodiversity net gain (BNG) legislation, which represents one of the most significant shifts in planning regulations in decades.
The legislation aims to ensure that wildlife habitats are left in a measurably better state after development takes place and plays a crucial role in restoring and preserving nature.
When developers undertake a project, BNG legislation mandates that they must provide a minimum of 10% biodiversity net gain by the end of the development and the habitat they create or enhance must be maintained for a minimum of 30 years.
It is clear ecologists will play a significant role in many projects and will be in heavy demand at a time when there is a shortage of skilled ecological workers, as the potential ecological liabilities of projects are acknowledged.
5. In addition to targeted PI cover, are there any additional features or expertise that customers have access to?
RSA have partnered with a specialist third party from the sector who will provide updates on relevant ESG frameworks and regulations and exclusive content each month, articles including opinion pieces, case studies and practical guides all based around ESG and regulatory and legal updates
Also, policyholders can access free advice lines for legal assistance, health and safety, tax advices and stress counselling.
