Every business has exposure to environmental liabilities and yet only a very small percentage of P&C insurance agents are discussing environmental issues with their client’s. Agents not discussing environmental issues with their client’s are needlessly jeopardizing the financial health of the agency.There is no other commercial insurance product that Since the late 1980’s when I began working with environmental liability insurance industry one thing has not changed, very few agents are talking to their insured’s about their environmental issues. In the late 80’s when I began working in the environmental insurance market I was As environmental specialists, we have on many occasions witnessed insurance producers confidently proclaim their accounts to be free of any pollution or environmental exposure. The reality is, however, that this kind of thinking can needlessly jeopardize your agency’s financial health by creating a serious and easily avoided E&O exposure. Just as important, it also results in lost opportunities to generate additional commission income from existing accounts and generally improve the professional standing of your firm. If you write any of the following types of accounts and are not offering pollution coverage, you are missing a terrific opportunity:
Mold Related Risks: Concern over mold exposure has become one of the main driving forces behind the recently accelerated demand for pollution coverage. Depending on the specifics of the risk, mold coverage may be included or excluded from pollution policies. Mold coverage opportunities can be broken down into three main categories:
I. Mold Remediation Contractors and Consultants
II. Contractors Pollution Liability For Construction Contractors
III. Site Specific Pollution Liability
Submission requirements are very stringent for any mold-related risk or coverage, so it is critical that complete information be forwarded with the initial application. Incomplete submissions will often be declined and underwriters may be unwilling to reopen previously rejected files.
Contractors: All contractors have a pollution exposure, and some of the largest pollution losses can come from risks that are not classified as environmental contractors. Serious pollution losses can arise while digging, moving or operating equipment, performing any construction activity or can arise as a result of a fire, explosion, storm, vandalism etc. Most CPL losses result from unforeseen and unpredictable circumstances arising out of a variety of contracting activities. To answer this exposure you should be letting all of your contractors know that they can apply for Contractors Pollution Liability (CPL). CPL can provide third party Bodily Injury, Property Damage and Cleanup coverage for unintentional pollution caused by covered operations while the named insured is working at sites that are not owned or occupied by the named insured. CPL coverage usually ends once materials are moved beyond the boundaries of the job site. As the name implies, contractors of all types purchase this coverage. CPL policies may be written on either claims made or occurrence form, depending on exposures. CPL policies can be written either on a job specific or annual basis.
Property Owners / Leaseholders: Any firm that owns or rents property has a pollution exposure. This can arise from the “midnight dumping” risk or simply as the result of corrosion, a fire, explosion or other accident. To deal with this exposure your insured can apply for Site Specific Pollution Liability (SSPL). SSPL can cover both first-party cleanup costs as well as third-party BI, PD and Cleanup costs. It is a very complicated coverage that defies simple explanation, but in short, SSPL provides coverage for unintentional pollution arising from a designated premise that is owned or occupied by the policyholder. Most types of entities can purchase SSPL. However, depending on exposures, first-party cleanup costs may not be available for certain risks. SSPL coverage is always written on claims made basis and coverage can have either a retroactive date of inception or, if qualified, can be offered with full retroactive coverage (sometimes called “historical coverage”). Site Specific Pollution Liability is often referred to as Pollution Legal Liability (PLL) or Environmental Impairment Liability (EIL).
Vehicle Owners: Any trucker, manufacturer, distributor or contractor who carries even small quantities of ordinary cargo can be faced with a serious pollution loss after a collision or overturn. It is a common misconception that only vehicles carrying materials labeled as hazardous run the risk of being involved in a pollution loss. In fact, cargo as ordinary as milk, animal feed, asphalt, dirt and most common chemicals can cause a pollution loss in the event of a spill. Vehicle owners can apply for Motor Vehicle Pollution Liability (MVPL). MVPL provides coverage for accidental pollution emanating from cargo carried on a scheduled vehicle. It does not cover Bodily Injury or Property Damage resulting from automobiles other than the pollution aspect and does not include an MCS-90 endorsement. MVPL is usually written on an occurrence form. MVPL is also sometimes called Transportation Pollution Liability (TPL).