Stand Alone Workers Compensation Insurance Becomes Available for Environmental Contractors

Environmental contracts and consultants, including asbestos, lead, and mold abatement contractors, often have difficulty in obtaining workers compensation insurance, particularly on a stand-alone basis. Some environmental insurers cam provide them with workers compensation insurance but only if the insurers can also write their environmental coverages, and premiums are frequently high. EIA has recently been successful in obtaining stand-alone workers compensation insurance both for its own insureds and for those with environmental coverages placed through other brokers. Minimum premiums are $5000.

Year-Old EPA Rule Requires Contractors to Use Lead Safe Practices

Since April 22, 2010, EPA Rule 40 CFR Part 745 has required contractors performing renovation, repair and painting operations that could disturb lead-based paint in homes, child care facilities and schools built before 1978 to be trained and certified to follow specific work practices to prevent lead contamination. Although the EPA rule does not mandate insurance coverage, it subjects contractors to significant liability exposure. Contractors’ pollution liability coverage for this exposure is available for certified contractors with minimum premiums of $550 for claims made policies, $800 for occurrence based policies. Base limits are $250,000; higher limits are available.

EIA appointed as wholesale broker by American
Safety Insurance Company

ASI is one of the premier underwriters of contractors’ pollution liability and environmental consultants’ errors and omissions insurance. EIA’s access to ASI, which only works through wholesale brokers, will provide retail brokers and their clients, not only with environmental coverages for contractors and consultants, but also commercial packages including workers compensation, auto, and excess/umbrella insurance. Purchasing packages from an environmental carrier is generally far preferable from a coverage and cost perspective to buying a variety of coverages from different carriers.

EIA, EWMA, and Beazley to create team for risk management
of post-remediation liabilities

Beazley Group is a Lloyds syndicate which has recently opened an environmental department headed by John Beauchamp and Jayne Cunningham. Beazley, EIA and EWMA will team to create an innovative program combining technology and insurance for the effective management of long-term, post-remediation liabilities. The program can be used as financial assurance for such liabilities, for example under the new New Jersey Remedial Action Permit program.

Chubb Environmental Approves Long-Term Stewardship Liability Coverage

Chubb Environmental has given formal approval to endorsements drafted by Susan Neuman of EIA which provide coverage under Chubb’s environmental site liability policies for “long-term stewardship” liabilities, i.e., arising from failures of institutional and engineering controls over known contamination left in place. The coverage is contingent on the controls being properly maintained through continuous monitoring/tracking and annual certification by an approved engineering company. The ESL policy to which the endorsements can be attached is automatically renewable provided Chubb is still writing this type of business at the end of the policy term.

EIA Forms Strategic Partnership for Environmental Claims Management

EIA, EWMA, an environmental engineering firm, and the Havkins, Rosenfeld, Ritzert & Varriale law firm have formed a strategic partnership for managing claims under environmental insurance policies. The services will be primarily marketed to environmental insurance companies.