Asbestos Insurance by Clarke Lyons Insurance

Asbestos Insurance Australia

Specialist insurance enquiries for businesses and property owners with asbestos-related exposures.

Asbestos risks need specific attention when arranging insurance. A public liability, professional indemnity or property policy should not be assumed to cover claims involving asbestos.

Clarke Lyons Insurance can help you explore insurance options for your activities and discuss whether relevant asbestos exclusions, limitations or specialist terms apply.

Request an asbestos insurance assessment from Clarke Lyons Insurance.

What Is Asbestos Insurance?

“Asbestos insurance” describes specialist insurance arrangements addressing particular asbestos-related exposures. It is not one standard policy that automatically covers removal work, professional advice, property contamination and every associated claim.

The relevant protection depends on your role:

Removal contractors: Liability arising from declared asbestos-removal activities.
Consultants and assessors: Liability arising from professional services, reports or advice.
Property owners: Potential liability or environmental exposures associated with a particular property.
Builders and demolition contractors: Risks involving asbestos encountered during construction or demolition.

An insurer must assess the activities, circumstances and protection requested. Availability is not guaranteed.

Who Should Consider an Asbestos Insurance Review?

Consider a specialist review if your business handles asbestos, provides asbestos-related advice or has responsibilities involving a property where asbestos is present.

Relevant enquiries may include:

Asbestos removal businesses.
Demolition and strip-out contractors.
Builders undertaking refurbishment work.
Asbestos consultants and assessors.
Businesses providing surveys, testing or monitoring.
Commercial property owners.
Owners corporations and property managers.
Contractors transporting asbestos waste.

These activities present different exposures. They should be described separately when requesting terms.

Does Public Liability Insurance Cover Asbestos?

Do not assume public liability insurance includes asbestos-related claims.

Check the policy wording and endorsements for any asbestos exclusion. Ask how it applies to your actual activities and whether the insurer is willing to offer appropriate specialist terms.

A certificate showing a public liability limit does not establish that asbestos work is insured.

Before accepting a quotation, confirm:

The activities the insurer has accepted.
Whether asbestos-related injury and property damage are addressed.
Any pollution or contamination exclusions.
Applicable limits, excesses and conditions.
Whether subcontracted work is included.

Removing one exclusion does not necessarily remove other restrictions affecting the same claim.

Asbestos Removal Contractors Insurance

For removal contractors, the assessment should reflect the work undertaken rather than a general description such as “building services”.

Explain:

The types of asbestos-related work performed.
Residential, commercial or industrial project involvement.
Whether demolition or structural work is included.
How waste is handled and transported.
Use of employees and subcontractors.
Relevant qualifications, licences and experience.
Claims history and known incidents.

Ask whether the proposed wording addresses allegations of third-party injury, damage to surrounding property or contamination arising from the declared work.

Correcting your own work and routine removal expenses are separate from liability claims. Neither should be assumed covered.

Professional Indemnity for Asbestos Consultants

A consultant’s exposure can arise from an alleged error in a survey, report, assessment or recommendation.

Examples to discuss include allegations that:

A report failed to identify relevant material.
Advice about the scope of work was inadequate.
Monitoring or assessment services were performed incorrectly.
A client relied on an inaccurate professional conclusion.

These are illustrative exposures, not statements that a claim would be covered.

Check that the insured professional services accurately describe the work performed. Also review asbestos and pollution exclusions, retroactive cover, notification requirements and applicable limits.

If a business both advises on and physically performs asbestos work, assess the professional and contracting exposures together.

Asbestos Insurance for Commercial Property Owners

Owning a building containing asbestos raises different questions from operating an asbestos-removal business.

A property owner should establish:

What is known about the material and its condition.
Whether relevant reports or registers are available.
Whether damage, disturbance or contamination has occurred.
What maintenance, refurbishment or demolition is planned.
Which contractors will perform the work.
How the existing property and liability policies treat asbestos.

Insurance should not be assumed to pay for planned removal simply because asbestos is present.

Any proposed protection needs to be assessed against the property’s circumstances and the insurer’s terms. A known issue must be disclosed accurately.

Can Environmental Liability Insurance Help?

Depending on insurer appetite and the circumstances, environmental liability insurance may be relevant to particular pollution or contamination exposures.

It does not automatically provide asbestos cover.

Ask specifically whether the proposed policy addresses:

Asbestos as an insured substance or exposure.
Liability involving neighbouring property.
Eligible investigation or remediation expenses.
Pre-existing conditions.
Gradual or sudden events.
Contractor activities.
Liability arising from waste transport or disposal.

Site-related and contractor-related arrangements can serve different purposes. Confirm which entity, location and activities are insured.

Does Asbestos Insurance Pay for Removal and Clean-Up?

It depends on why the expense arose and what the policy covers.

Distinguish between:

Planned removal: The cost of removing asbestos as part of maintenance, refurbishment or demolition.

Rectification: The expense of correcting work that was incomplete or defective.

Incident-related clean-up: Costs arising after an event that may fall within an insured liability or environmental provision.

Defence and compensation: Eligible costs associated with a covered claim against the insured.

These categories should not be treated as interchangeable. Ask your broker to explain the circumstances in which each could—or could not—be covered.

Existing Asbestos, Known Incidents and Previous Work

Be clear about what is already known before requesting insurance.

Provide details of previous complaints, suspected exposure incidents, contamination concerns, regulatory correspondence and claims.

Do not assume a newly arranged policy will cover a problem discovered before inception.

For policies operating on a claims-made basis, review the retroactive date and notification requirements. If you are changing insurers or ceasing work, discuss continuity and potential run-off requirements before allowing existing cover to lapse.

What Does Asbestos Insurance Not Cover?

Every proposed arrangement needs a careful exclusions review.

Important questions include how the wording treats:

Undeclared activities.
Known claims or circumstances.
Planned removal and routine maintenance.
The cost of correcting defective work.
Employee injury.
Professional services under a contracting liability section.
Pollution or contamination.
Contractual indemnities.
Fines and penalties.
Waste transport and disposal.
Work outside the declared territory.

A policy described as “specialist” still has boundaries. Ask for an explanation of exclusions relevant to the way your business operates.

Employee Injury and Workers Compensation

Do not rely on public liability insurance for employee injury protection.

Workers compensation is a separate area, with requirements depending on the jurisdiction and employment circumstances.

Similarly, insurance acceptance does not establish that a business is licensed, authorised or compliant for the proposed asbestos work. Confirm those requirements independently with the relevant regulator.

Subcontractors and Contract Requirements

Before appointing a subcontractor, clarify the work they will perform and the insurance required.

Your liability arising from subcontracted work is different from the subcontractor’s own liability. Check both arrangements.

For contracts involving asbestos, discuss:

Required insurance types and limits.
Specific asbestos-related wording.
Indemnities and assumed liabilities.
Responsibility for surrounding property.
Professional services.
Waste handling and disposal.
Evidence of insurance.

Obtain legal advice on significant contractual obligations. A contractual promise may extend beyond available insurance.

How Much Asbestos Insurance Cover Do You Need?

The appropriate limit depends on the activities and potential consequences of a claim.

Consider:

Project size and complexity.
Work around occupied premises.
Exposure to neighbouring property.
Potential for several claimants.
Professional advice responsibilities.
Contractual requirements.
Defence costs and relevant sublimits.

Ask whether limits apply per claim or occurrence, whether an aggregate applies, and how related claims are treated.

A contract’s minimum insurance requirement is a starting point, not a complete risk assessment.

What Affects Asbestos Insurance Costs?

There is no reliable universal premium for asbestos-related insurance.

An insurer may need detailed information about the work, revenue, experience, procedures, claims history and requested protection.

For property-related enquiries, reports about the site, material condition and planned works may be important.

Compare the accepted activities and exclusions alongside the premium. A quotation is only useful if it addresses the exposure you intended to insure.

What Information Is Needed for an Assessment?

Prepare the information relevant to your role.

For contractors and consultants:

Legal entity and business description.
Revenue by activity.
Relevant qualifications, licences and experience.
Typical and maximum project values.
Work locations and customer sectors.
Subcontracting arrangements.
Existing policies and claims history.
Relevant contracts and procedures.

For property owners:

Property address and use.
Available asbestos reports and records.
Known condition or contamination concerns.
Planned works.
Existing insurance documents.
Contractor details, where appointed.

Accurate information helps establish whether suitable terms can be explored.

Asbestos Insurance Through Clarke Lyons Insurance

Clarke Lyons Insurance provides a point of contact for asbestos insurance enquiries.

Tell us whether you are seeking protection for removal work, professional services or a property-related exposure. We can discuss the information needed to explore relevant insurance options and help you understand proposed terms.

Insurer acceptance, cover availability and exclusions will depend on the circumstances.

Asbestos Insurance FAQs

Where can I enquire about asbestos insurance in Australia?

Contact Clarke Lyons Insurance with details of your activities or property. The enquiry should identify the asbestos-related exposure and the protection you are seeking.

Is asbestos insurance included in ordinary business insurance?

Do not assume so. Review the policy and endorsements for asbestos and related exclusions.

Can asbestos removal businesses obtain public liability insurance?

Specialist terms may be available, subject to insurer assessment. Confirm that the accepted activities and wording address the work actually performed.

Do asbestos consultants need professional indemnity insurance?

Consultants should assess claims arising from their professional services and any contractual requirements. Check whether the proposed PI policy addresses asbestos-related services.

Can I insure a building that contains asbestos?

The presence of asbestos needs to be disclosed and assessed. Insuring the building does not necessarily mean asbestos-related liabilities or removal costs are covered.

Will insurance pay to remove asbestos before renovations?

Do not assume planned removal is insured. It is different from costs arising under a covered incident or claim.

Does a subcontractor’s insurance protect my business?

Not automatically. Review your own potential liability and the subcontractor’s protection separately.

Can I obtain cover after discovering contamination?

Disclose the issue fully. A new policy should not be assumed to cover a known condition or loss; any available terms require specific insurer assessment.

Does insurance replace licensing or safety requirements?

No. Insurance, licensing and workplace safety obligations are separate matters.

Request an Asbestos Insurance Assessment

Understand what your current policies say about asbestos before relying on them.

Contact Clarke Lyons Insurance to discuss your asbestos-related activities, property exposures and insurance requirements.

This information is general. Cover depends on insurer acceptance, policy wording, schedules, endorsements, limits and excesses.