Uncover New Opportunities by Helping Clients Identify Environmental Exposures

• By: Olivia Overman
• May 29, 2026

The environmental insurance market remains stable, with a broad range of carriers actively competing in both the primary and excess & surplus spaces, according to the Amwins State of the Market: A Focus on the Environmental Insurance Market report.

However, as environmental risks evolve—from emerging contaminants to stricter regulations—businesses increasingly face exposures that standard policies often exclude. This shifting landscape creates both challenges and opportunities for agents, who must stay informed about specialized coverage while helping clients close potentially costly gaps.

 “We have seen carriers add particular pollutant exclusions on their policies,” says Kari Kohal, President, ECC Insurance Brokers, LLC dba American Risk Management Resources Network (ARMR).  “For example, we are seeing many per- and polyfluoroalkyl substances (PFAS) and perfluorooctanoic acid (PFOA) exclusions that were not on environmental policies 10 years ago.”

“There are carriers who will consider coverage for these constituents, however, it does take a specialized broker to successfully negotiate the carve back of coverage.” Kohal says. 

For many agents, working within this evolving market poses difficulties in being knowledgeable about the coverage due to its complexity and specialization. Nevertheless, offering environmental coverage is a significant cross-selling opportunity, as many standard policies exclude pollution-related claims, leaving many clients with major coverage gaps.

“Our research shows that fewer than 20% of licensed insurance professionals are actively working in the environmental insurance space, yet every commercial insured they work with is impacted by environmental exposures,” says Chris Bunbury, president, Environmental Risk Managers Inc. (ERMI). 

“This means there are huge upside opportunities for insurance agents that use environmental insurance to open doors and as a way to sell all of the other insurance products their agency represents,” he says. 

Yet, the need to match environmental coverage to specific exposures makes it challenging for agents to place policies correctly without deep expertise. “Pollution exposure is everywhere,” says Nicole Wright, environmental underwriter at Burns & Wilcox. “Having a conversation on environmental liability exposures opens up gaps in the general liability policies, which typically exclude pollution-related incidents.” 

“This is where partnering with wholesale brokers that have substantial experience in brokering and negotiating environmental coverage is so important for an independent agent’s success working with environmental insurance,” Kohal says.

“Having such vast opportunity and partnering with a wholesale broker who has extensive experience brokering and negotiating environmental coverage is a great way for their insureds to close their gap in coverage with their current insurance program, and for the retail agent to grow their book of business while delivering additional value to their clients,” she says.

Agents can also use environmental coverage as a strategic entry point when rounding out their book, according to Bunbury. Because many companies have not fully considered their pollution exposures, raising the topic mid-term often opens broader conversations about risk management and insurance gaps.

“We know 90 days before renewal is the commodity-based bidding process, but 90 days after renewal, when the smoke is settled, and you call an insured to discuss the environmental exposures impacting their operations,” Bunbury explains. “They’ll have time for you to be able to educate them so they can make an informed decision if investing in pollution insurance will add value to their business model.”   

“When they understand the value and the fact their current agent has not educated them, they will ask if your agency can handle their commercial insurance program,” he says. “When you tell them you can, you do a midterm cancel and rewrite, you’re the new agent.”

Further, by getting to know their clients and understanding their operations and pollution exposures, agents can ensure they can submit “fully completed applications and organized submissions with details that help with underwriting and help make the process go smoothly, without so much back and forth,” Wright says. “As far as pricing, that should never be the sole focus as much as making sure that the insured has true financial protection.”

By leveraging access to specialty brokers and wholesalers who can provide specialized environmental insurance, agents can bring immense value to their clients.

 “Cross-selling and partnering with a qualified wholesale broker is a win-win partnership for a retailer and their client since the retailer can work with a wholesale broker who can provide quality environmental insurance options for the agent to sell,” Kohal adds. “This results in a higher closing ratio, while providing a unique value other retailers might not be giving.”  

Olivia Overman is IA content editor.

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