Insurance cost affected by ISO 14001?

[Aljoscha]

Hello from Europe,
my first thread, here we go

I had a meeting with my VP about the benefits from ISO 14001. He is interested in the chance to obtain insurance at reasonable cost by ISO 14001-Certification. I'm wondering, if this is just a theorie or if its applicable. Do you have any experience in bringing down the insurance costs? What is the main argument to the insurance company to cut the costs?

Thanks for your help.

Aljoscha

[Claes Gefvenberg]

In Reply to Parent Post by Aljoscha

What is the main argument to the insurance company to cut the costs?

Hello Aljoscha, and welcome to the Cove

The certification as such may not mean much, but the fact that you operate a system aimed at systematic control and continual improvement of your operation should mean something.

The clauses for Operational control, Emergency preparedness and response & handling of Nonconformance and corrective and preventive action should be interesting to your insurance company.

/Claes

[db]

Let me echo, Welcome!

I don’t have any first-hand knowledge, but I have heard that in certain industries insurance rates could be affected by 14K registration. Primarily, if you are required to have environmental catastrophe insurance. The same could be true for financing. Some banks will look more favorably at certain businesses if they are 14K. But in either case, it depends on several factors; where you are, what you do, and what your history has been.

[Randy]

Insurance is always a case by case thing. I don't know about Germany, but in the US 3rd party verification of organizational practices have been used as a method by which insurance costs can be based. You're need to talk to your insurance company and ask what they will accept.

[Sidney Vianna]

In Reply to Parent Post by Aljoscha

What is the main argument to the insurance company to cut the costs?

Thanks for your help.

Aljoscha

The main argument is that, once you implement a MEANINGFUL EMS you are better managing the environmental risks of your operation, thus you are less likely to have an environmental incident/accident/non-compliance etc . . .

You become less of a liability to be insured.

hope this helps. Let us know if your insurance agent buys into it. They should

[Sidney Vianna]

You can read an interesting position of the Insurers perspective in Section 5.4.1 of document attached here.

[Paul Simpson]

One company I have been dealing with spoke to their insurer about accredited third party assessment of their EMS and OHSAS systems and, folowing successful registration, they have recovered all the costs of their assessment and registration in their first year's premium.

[Claes Gefvenberg]

In Reply to Parent Post by Paul Simpson

have recovered all the costs of their assessment and registration in their first year's premium.

A brilliant reply to Aljoscha's original question. An insurance company with any sense should reason that way.

/Claes