Method Statement – Environmental Insurance and Risk Management
SCOPE OF SERVICES
• Risk Assessment Challenge Sustainable
• Risk Management Review project
scope, Extended BPEO Design &
regulatory methodology for Procurement Risk
• Risk Reduction drivers & design assessment of
Practical Management Asset
criteria against options against Optimisation
procurement and Ensure what is
• Insurance Optioneering sustainability range of
design tools to designed & Process
objectives assist design optimisation to
economic & planned is
• Appropriately Targeted social criteria
teams in making carried out with minimise ongoing
cost and impact
decisions to minimum
maximise resource use & Ensure delivered
asset is meeting
• Cost-effective THE VALUE CURVE
Strategy & Feasibility & Procurement &
• Assignment Planning Optioneering Design Construction Operation
• Flexibility PROJECT LIFECYCLE
MWH can provide advice, support and reports on risk management responses and the use of
appropriate environmental insurance options for managing customers liabilities.
MWH’s approach to providing appropriate risk management and insurance solutions is to
understand the nature of the risks involved and the manner in which these expose a customer’s
business to liability. Stakeholders in this process, such as land owners, occupiers, funders,
vendors and members of the public can be very varied and, by considering their needs, value
can also be added to MWH’s customers. For example, by eliminating public concern over
residual risks on a site, the value of the land under consideration may be greatly enhanced.
Alternatively, the effort and expense of managing risks on an operational site may be reduced if
the risk itself is identified and managed differently.
Typically there are four main steps that MWH would aim to work through when assessing a
customer’s risks within their organisation:
Risk Appraisal – MWH will identify risks in its organisational activities and in the external
environment; assist customers in working towards a common management understanding of
individual risks and in raising awareness of current risks within customer organisations.
Risk Assessment – MWH would quantify risks on a common and agreed basis across a
customer’s organisation and aim to reveal critical risks with a high priority for management
action and the associated cost of such risks.
Risk Management – MWH would identify the most cost effective risk management framework to
monitor and evaluate existing and future risks drawing on a range of expertise in risk
Implementation – MWH would assist customers in establishing a mandate for risk management
within their organisation, in allocating risk responsibilities throughout a customer’s organisation
and in providing a basis for ongoing monitoring and evaluation of risk management processes.
Based on an understanding of the technical risks, gained from environmental reports, MWH can
assist customers in acquiring environmental insurance solutions for up to 25 years. They are
transferable on change of ownership of the land and can be written so as to allow for later
subdivision of the land in question and to protect the original landowner from any residual
liability. They can be structured to respond to a wide range of associated financial risks,
including historic contamination, ongoing site operations and the associated financial risks and
The insurance is for ‘contamination’ as defined in the policy that: originates on-site and stays
on-site and/or originates on-site and migrates off-site and/or which originates off-site and
migrates on-site. ‘Specified use’ cover can be provided for contamination that renders the site
unsuitable for a specific category of use whether or not legal action is taken, for example, by a
neighbour or by a regulator such as the Environment Agency. Where clean-up costs are
incurred under the direction of the regulator these can be met by ‘clean-up liability’ cover.
There is full civil liability protection against actions by third parties, and legal defence costs are
covered for cases of criminal liability (it is not possible to insure against criminal liability as
such). Personal liability of directors and officers arising under common law or statute can also
THE MWH APPROACH AND TEAM
Risk management and insurance advice will be provided by an experienced team of consultants
drawn from MWH and its sub-consultants located across the UK, with management and
direction from MWH’s Duncan Russell. Duncan is a hydrogeologist with 20 years experience in
environmental risk management and insurance provision in the property sector and other areas.
The team will be structured so that where site visits are required the staff from the nearest
office are used enabling cost savings to be made to the customer in terms of mobilisation.
All projects will be managed in accordance MWH’s Product Delivery System, which includes both
MWH’s quality assurance and environmental management procedures.