Pre-insurance environmental surveys are a specific type of site audit conducted to evaluate the environmental risks and potential liabilities of a facility prior to obtaining insurance coverage. These assessments go beyond verifying compliance with environmental, occupational health, fire, and industrial safety legislation and consider a range of site-specific risk factors depending on the scope of the planned insurance policy.

Typical elements assessed include:

• History of environmental, health and safety-related incidents, claims, and legal actions involving the enterprise;
• Risks associated with legacy (historical) contamination from past industrial activity;
• Risks related to ongoing operations at the site;
• Potential for accidental events with environmental and/or social impacts, including their likelihood and severity;
• Estimated damage from such events, including costs of site remediation and restoration;
• Potential losses due to business interruption;
• Liability for third-party damage;
• Maximum foreseeable loss estimate (Probable Maximum Loss, PML);
• Worst-case scenario loss estimate (Maximum Possible Loss, MPL).