Australian insurers trail their counterparts in the US and China when it comes to placing lead exclusions on policies, according to Gen Re.

Sydney-based Liability Practice Leader Nicholas Murphy says insurers might impose coverage restrictions on companies with well-known lead operations, but beyond that not much attention is paid to other, less obvious, forms of exposure.

Lead contamination is not a standard exclusion in most commercial general liability policies in Australia.

“In the US, lead exclusions are common,” Mr Murphy said.

“In the Asia-Pacific region, liability underwriters in China are leading the charge with lead exclusions. Australia has yet to wake up.”

Lead exposures are not restricted to mining and smelting sites. A Macquarie University environmental scientist recently found high levels of the chemical in soil samples in Sydney and other suburbs.

“Lead contamination has been present in many sectors of the community for many years,” Mr Murphy said. “Often it is at a relatively low level, but even at a low level it can be bad enough.”

The insurance industry has handled few lead poisoning claims, but a government study released in May on the impacts of low-level contamination may signal a turning point.

The National Health and Medical Research Council found a link between blood lead levels of less than 10 micrograms per decilitre and effects including reduced IQ and academic achievement in children.

It recommends any blood lead level above five micrograms per decilitre should trigger an investigation.

“Proof of IQ impairment has been difficult in the past, but in the US a blood lead level of 10 micrograms per decilitre or higher is now enough evidence to sustain a loss-of-IQ allegation,” Mr Murphy said. “Australian courts could easily adopt this or a similar test.”