An illustration depicting a thriving environment on top, then a dead environment on the bottom, seemingly due to pollution. Toxic waste barrels litter the ground in the bottom part of the illustration. An increase in lawsuits involving pollution liability claims and greater severity in judgments are also driving growth in the environmental liability market. (Credit: Shutterstock/Lightspring)

The environmental liability insurance market is experiencing significant growth due to several convergent factors impacting the supply chain and construction sector.

Passage of the Infrastructure and Jobs Act in November 2021 has cleared the way for a construction boom fueled by a $1 trillion investment in the United States’ critical infrastructure. Many of these projects will create exposures that necessitate — either by contractual obligation or pragmatic self-interest — protection in the form of environmental liability insurance.

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