XL Catlin has introduced a new policy protecting Asia-Pacific property owners from their increasing exposure to environmental liabilities.

Real Estate Environmental Protection (REEP) offers property portfolio owners, real estate investment trusts and property investors coverage for historic and new pollution conditions, both sudden and accidental, plus gradual pollution.

It covers statutory clean-up orders, restoration, legal defence costs through to third-party property damage, bodily injury and business interruption.

Head of International Environmental Insurance Adias Gerbaud says pollution incidents are “a big concern” in the Asia-Pacific region.

“Environmental exposures have been amplified by increasingly complex regulation, and a heightened awareness among the population who do not want to tolerate damage to the environment,” Ms Gerbaud said.

Regional Underwriting Manager for Environmental Liability Andrew Hookings says despite enforcement of the “polluter-pays” principle, property owners, real estate managers and developers could find themselves liable for issues they had little to do with, or knew little about.