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Asbestos Liability Risk Transfer

An innovative coverage solution that addresses third-party claims stemming from asbestos products or occupational exposures.


Insurance designed to specifically address asbestos liability, eliminating defense costs and potential coverage gaps. 


Actuarial analysis to project forecasted claims and insurance archaeology to determine the availability of historical insurance policies.


Payment of third-party claims with a known ultimate cost, eliminating surprises or cost overruns.

Many companies are subject to third-party claims for bodily injury related to asbestos. These claims can arise from products manufactured, sold, or installed that contained asbestos or from occupational exposures in the workplace. Asbestos liability risk can be transferred, and businesses have two primary specialty insurance solutions to consider.

Adverse development cap insurance

Adverse development cap insurance covers loss in excess of forecasted total claims costs. Under an adverse development cap policy, a company pays for claims up to a forecasted total (the cap); if claims costs exceed that amount, the policy covers costs up through limits established in the policy. With this solution, businesses retain responsibility for claims administration and management. The costs associated with this solution represent the premium for the insurance.

Loss portfolio transfer

With a loss portfolio transfer (LPT), forecasted total claims costs are transferred to an insurance company in a lump sum payment, and additional insurance is put in place on top to cover potential overruns. The insurer becomes responsible for paying all third-party claims losses from dollar one and takes on claims management and defense functions. The insurance policy term has no expiration date; the insurer is responsible as long as insurance limits remain available. The costs associated with this solution are the insurance premium; the client prefunds to the insurer the net present value of its forecasted claims.

The trouble with non-specialty coverage

While businesses often rely on general liability and workers’ compensation policies for cost recovery, these policies may not cover all claims and associated costs due to several factors, including gaps in coverage, timing constraints on filing claims, or an inability to establish that coverage existed for certain years and periods of time. As a result, many businesses have shouldered asbestos claims costs directly, including frictional costs associated with defense costs, claims administration, and claims management. These burdensome costs can significantly hinder an organization’s operational financial performance, mergers and acquisition strategies, and other planned expenditures.

More than placement

Both solutions require some advance work, which we help businesses to complete. For example, we can help you obtain actuarial analyses via Oliver Wyman, which can help better project forecasted future claims and insurance archaeology to determine what historical insurance policies might still be available for cost recovery.

Why Marsh

As an industry leader in providing environmental placement and claims solutions, our team handles more than 500 claims annually and has advocated on more than 2,500 claims in the past five years. Among our 40 dedicated environmental colleagues, nearly half have received Risk & Insurance’s Power Broker award, a designation given to risk management professionals based on demonstrated excellence in solving insurance-related issues, per client testimonial. 

Our people

Kimberly Mann

Kimberly Mann

Senior Vice President, Environmental Practice

  • United States


Do you know how to forecast, report, and manage your organization’s asbestos liability costs?

Learn about the challenge of asbestos claims—how their numbers and costs may develop over time—and the solutions available to help address existing, pending, and future claims.