Marsh has launched a new insurance solution for the transportation and storage of carbon dioxide. Created by Marsh’s energy and power team and underwritten by Canopius, the solution will enable energy operators to meet their financial security obligations when captured CO2 is being transported and injected into suitable geological structures.

Traditional insurance provision for these risks requires physical damage or disruption to operations caused by an out-of-control well in order for policies to respond. The new solution adds a new non-damage trigger for the geological leakage of CO2, providing an indemnification for the costs of corrective measures, as well as a trigger for the associated business interruption.

The new solution also includes an indemnification for the costs incurred to acquire carbon credits for the mass of CO2 leaked, where applicable to the project's geography.

Sam Harrison, group chief underwriting officer, Canopius, commented: “It’s our job to find solutions to address the as-yet unknown risks associated with these new, exciting technologies. But that doesn’t mean we’re working in the dark – we have decades of experience in finding solutions for traditional upstream energy resource risks and we can put that experience to work in these new fields. Working with our partners and their clients, we can take learned lessons and find new, innovative ways of addressing tomorrow’s challenges."

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