Asbestos Insurance – Protecting Property Owners and Businesses

Asbestos remains one of the most significant liability risks in Australia, particularly for property owners, landlords, and businesses in the construction and maintenance industries. Despite being banned in 2003, asbestos-containing materials (ACMs) are still present in many commercial, industrial, and residential properties built before the 1990s.

For Clarke Lyons clients, asbestos insurance provides essential financial protection against claims and remediation costs if exposure occurs.

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What Is Asbestos Insurance?

Asbestos insurance is a specialised form of liability cover designed to protect businesses, contractors, landlords, and property owners from claims related to asbestos exposure. It can cover:

• Third-Party Liability: Claims for injury, illness, or death caused by asbestos exposure.

• Property Damage: Costs associated with contamination or required remediation.

• Defence Costs: Legal expenses incurred in defending claims.

• Clean-Up Costs: Expenses to safely remove and dispose of asbestos materials.

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Who Needs Asbestos Insurance?

Asbestos risks affect a wide range of industries and property stakeholders, including:

• Property Owners & Landlords: Especially if buildings were constructed before asbestos bans.

• Strata Managers: Responsible for common property safety and compliance.

• Construction & Demolition Contractors: High exposure when disturbing older materials.

• Facility Managers: Ensuring compliance in schools, hospitals, and commercial buildings.

• Specialist Asbestos Removalists: Direct handling requires comprehensive cover.

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Why Is It Important?

Without asbestos insurance, businesses and property owners could face multi-million-dollar claims for personal injury, liability, and remediation. Court rulings in Australia have consistently awarded significant damages to claimants affected by asbestos-related diseases such as mesothelioma and asbestosis.

Having cover in place provides:

• Financial protection from large claims.

• Compliance with legal obligations for workplace safety.

• Peace of mind for businesses, tenants, and property owners.

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Clarke Lyons Expertise in Asbestos Insurance

At Clarke Lyons, we specialise in sourcing tailored insurance solutions for complex risks, including asbestos. We work with leading insurers to ensure that policies are designed around the unique exposures of your property or business.

Our expertise includes:

• Reviewing existing policies for asbestos exclusions.

• Arranging standalone asbestos liability cover where required.

• Advising on risk management strategies to minimise exposure.

• Supporting clients through claims and compliance processes.

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Frequently Asked Questions (FAQs)

1. Is asbestos insurance included in standard liability insurance?
No. Most general liability or property policies exclude asbestos-related claims, which is why a specialist policy is required.

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2. Do all older properties need asbestos insurance?
Not always. But if asbestos is present or suspected in a property (built before the 1990s), landlords and managers should consider cover.

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3. Who pays for asbestos removal?
Property owners are generally responsible for safe asbestos management and removal, though liability can extend to contractors if exposure occurs during works.

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4. Is asbestos insurance expensive?
Premiums vary depending on property type, industry, and level of exposure risk. For high-risk industries (e.g., demolition), premiums will be higher.

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5. Can Clarke Lyons arrange asbestos insurance for strata buildings?
Yes. We work with strata committees and managers to ensure cover for both liability and remediation risks linked to common property.