Environmental Liability Insurance: A Comparative Analysis of Brazil and Canada

Abstract

Background: Environmental liability insurance is an essential tool for managing risks associated with industrial pollution and ecological damage. However, its legal frameworks differ significantly across countries, impacting its effectiveness.
Objective: This study compares the legal frameworks for environmental liability insurance in Brazil and Canada, focusing on regulatory requirements, policy coverage, and enforcement mechanisms.
Methodology: A qualitative analysis of environmental laws, insurance policies, and case studies of industrial incidents in both countries is conducted. Interviews with environmental lawyers and insurers provide practical insights.
Findings: Canada’s stringent environmental regulations ensure comprehensive coverage and prompt claim settlements. Brazil faces challenges due to inconsistent enforcement and limited policyholder awareness. Harmonizing international standards for environmental liability insurance could enhance its role in promoting sustainability.