An organization’s exposure to environmental risk depends on many diverse but interrelated factors, including past and present company operations, geographical setting, contractual arrangements and the prevailing legal framework in relevant territories.
Environmental risks and associated third-party liabilities threaten organizations’ financial health. Businesses must protect their balance sheets from uninsured, unbudgeted and out-of-pocket expenses. Insurance products cover the financial uncertainties associated with an organization's various exposures to environmental liability.
Each organization’s environmental risk profile is unique. By working together, we can tailor an optimal risk management and insurance solution through a combination of the products outlined below as deemed appropriate:
Pollution Legal Liability Insurance (PLL)
PLL protects an owner or tenant against losses from unknown and known sources of pollution liability at specifically scheduled locations. Unknown sources may be either undiscovered existing contamination or contamination resulting from future releases. Known conditions may be considered with a corresponding mitigating factor (below actionable levels, engineering/deed/regulatory controls). Coverage is most often claims-made. PLL can also be used to satisfy most federal and state-specific pollution liability financial assurance requirements.
Coverage is designed to apply pollution losses on, at, or from a covered location that results in:
- Third-party claims for bodily injury or property damage (onsite and offsite)
- Onsite and offsite mandated cleanup costs
- Associated expenses for legal defense and investigation (generally within the policy limits)
- Other enhancements based on risk profile (e.g., mold coverage, pollution transportation, liability for disposal sites that are not owned, pollution business interruption)
Contractors Pollution Liability (CPL)
CPL addresses pollution conditions arising from covered contract operations performed for third parties at locations that are not owned. It includes third-party cleanup costs, third-party bodily injury and property damage. This can be expanded to include claims for third-party loss of use, natural resource damages, pollution from transportation, disposal liability, and defense costs (generally within the policy limits). These programs may also be used to satisfy project-specific or fixed-base operator requirements, and can be placed on behalf of the project owner(s), or the primary or general contractor. Coverage can be occurrence or claims made.
Other Products/Applications for Coverage
General Liability/Professional Liability coverage may be may be added to a CPL form for applicants with design/build or environmental consulting exposures.
General liability coverage may be may be added to a pollution liability form for applicants with operational, manufacturing and secondary products exposures.
Although PLL may be used to satisfy Resource Conservation and Recovery Act (RCRA) or state-specific financial assurance requirements, other products that also satisfy regulatory statutes include:
- Storage tank liability coverage may serve as either the deductible for an existing state program or as the primary financial assurance mechanism for operational single tanks up to a large tank portfolio.
- Closure/post closure coverage may serve as the backing for closure and care obligations of industrial, recycling or disposal facilities with a long and useful life ahead of them.
