Site Pollution Liability

EIA can provide site pollution liability coverage, pre-underwritten and tailored to fit specific risks by EIA’s environmental insurance and legal experts. Such coverage can be essential to the success of real estate transactions involving contaminated property.

Basic Coverage
Pollution Conditions: Pre-existing known and unknown from historical site operations, and new (post-closing) pollution conditions from on-going operations that may give rise to:
Liabilities: bodily injury, property damage, cleanup costs, natural resource damages, business interruption, failure of institutional/engineering, compliance, buyer excavation activities

Program Highlights
Limits up to $50 million
Terms up to ten years (but automatic renewal available in some circumstances)
A rated carriers
Required underwriting information for coverage of contaminated properties: site assessments and other environmental documents, regulatory correspondence, transactional documents (purchase and sale agreements, leases)
Coverage for indoor pollution including mold, asbestos, lead
Coverage of institutional/engineering controls liability
Portfolio coverage for groups of properties

Integrated Environmental Risk Financing
Legal transactional services – negotiate and draft environmental provisions of purchase and sale agreements,
structure deals
Links to top environmental engineering companies and law firms assessments

Customer Profile:
Real estate developers
Parties to brownfields/contaminated property transactions
Environmental facilities (waste, recycling. landfills)
Hospitals
Financial institutions
Municipalities
Automobile dealerships
Property managers (residential, commercial buildings)

Clean-up Cost Cap

Policy Highlights
Coverage for cleanup costs exceeding a cost estimate
Attachment point is the cost estimate usually plus a buffer
Policy periods of one to ten years
Coinsurance requirements may apply

Program Highlights
Applicable to cleanups of all kinds, including RCRA and CERCLA, Brownfields/Voluntary, settlements
of coverage litigation
Scheduled locations or projects – can also apply to portfolios of properties or multiple projects
Can be combined with separate site pollution liability policy to cover cleanup costs from unknown conditions, third party liability, long-term stewardship
Minimum premiums usually $300,000.00
For sites with small cleanup costs, indemnification for cost overruns can be provided by a guaranteed fixed price remediation contract

Customer Profile
Remedial action contractors
Project site owners
Developers/buyers
Responsible parties

Contractors Pollution Liability

EIA can provide contractor’s pollution liability (CPL) coverage for large and small environmental and non-environmental contractors at the lowest prices and with the broadest coverage. For small contractors, EIA’s environmental insurance and legal experts provide the same services available to large contractors with in-house risk managers and attorneys, including assistance with complex applications, evaluation of indemnities and insurance requirements, and legal review of coverages.

Policy Highlights

CPL policy provides coverage for bodily injury, property damage, and cleanup costs arising out of pollution conditions caused by Named Insured’s operations
Occurrence or claims-made trigger of coverage available
Defense outside limits available
Mold coverage available on occurrence and claims made basis
Nose and prior acts coverage available (for gap between occurrence and claims-made coverage)
Broad definitions of insured operations

Program Highlights
Combined form with Commercial General Liability/Contractors’ Pollution Liability/Professional Liability or separate CPL and professional liability policies
Limits up to $50 million
Packages available including excess/umbrella, auto, workers comp, and property
Minimum premium: $2,500.00 for stand alone CPL policy, $3,500.00 for combined policy without mold,
$5,000.00 with mold
Premiums flat, not auditable
Underwriting requirements: proof of qualification to perform operations (licenses, certifications, resumes, SOQ’s); contracts with clients and subs hae approved language, loss history, finanials

Customer Profile
Remedial action contractors
Asbestos/lead abatement
Mold abatement
Fire and Water Restoration Contractors
Emergency response
Storage tank installation/removal
Project managers
Waste water contractors
Non-environmental contractors (GC’s, HVAC, Electrical, Painters, Construction)

Professional Liability

EIA can provide environmental consultants’ professional liability (ECP) coverage at the lowest prices and with the broadest coverage. EIA’s environmental insurance and legal experts assist with complex applications, evaluate contracts and insurance requirements, and place specific types of consulting risks with appropriate carriers.

Policy Highlights
ECP policy provides coverage for financial costs arising out of acts, errors and omissions in the performance of the Named Insured’s professional services
Trigger of coverage is a claim first made and reported to insurer during policy period

Program Highlights
Combined form with Commercial General Liability/Contractors’ Pollution Liability, or separate
professional liability policy
Limits up to $50 million
Packages available with excess/umbrella, auto, and workers comp
Minimum premium: $2,500.00 for stand alone policy, $3,500.00 for combined policy without mold,
$5,000.00 with mold
Minimum deductible $2,500.00
Premiums flat (not auditable) available
Annual and per project policies

Underwriting Requirements
Proof of qualification to perform particular services (licenses, certifications, resumes, SOQ’s)
Claims history/loss runs from previous carriers
Client/sub contracts with the approved language
Carriers have different “appetites” (environmental vs. non-environmental, commercial vs. residential,
particular states)

Customer Profile
Environmental engineers and consultants
Mold/IAQ assessors, consultants
Asbestos/lead consultants
Tank consultants, testing firms
Analytical laboratories
Non-environmental consultants that also do environmental work (e.g., home inspectors)

Tank Insurance

EIA can provide underground and above ground storage tank liability insurance to petroleum and non-petroleum marketers. EIA’s technical experts can pre-underwrite the account, to distinguish old from new contamination, so that carriers will provide needed operational tank coverage for sites that have existing contamination.

Policy Highlights
Covers bodily injury, property damage and on site and off site cleanup costs arising out of discharges, leaks, emissions from scheduled storage tanks systems
Covers releases commencing after the policy retroactive date
Claims made and reported trigger
Meets US EPA financial responsibility requirements

Program Highlights
Limits up to $50 million
Lowest minimum premiums per tank
Portfolio coverage available
Packages available — with SPL, CGL, umbrella, etc. — for lower overall premiums

Customer Profile
Gas stations and convenience stores
Tank farms
Schools
Municipalities
Car dealers
Hospitals
Hotels

Commercial Packages

EIA can provide packages of environmental and non-environmental coverages to clients with on-going operations such as contractors and manufacturers. In each case, the package will be obtained from the same environmental carrier. This, along with EIA’s expertise, ensures that premiums will be lower and coverage will be better than when the same coverages are obtained separately through different carriers.

Contractor Packages
• Combined Contractors’ Pollution Liability, Professional Liability, and Commercial General Liability
• Excess/Umbrella
• Workers Compensation – premiums as low as $3,000.00
• Automobile
• Property

Manufacturer Packages

• Combined Commercial General Liability, Site Pollution Liability, Products Pollution and Mold
• Excess/Umbrella
• Workers Compensation
• Property
• Automobile

Alternative Risk Transfer

Alternative Risk Transfer (ART) products are risk transfer mechanisms that are alternatives to conventional insurance. EIA can use ART products, often in combination with conventional insurance products such as site pollution liability policies, to solve the major problems in brownfields redevelopment: the small sites and long term stewardship problems. ART mechanisms include:

Guaranteed fixed price remediation contracts (GFPR’s). GFPRs indemnify site owners or developers for cost overrun liabilities. EIA is associated with engineering companies who are willing offer to GFPR indemnifications for overruns above small remediation costs, i.e., $1 million or under, and for which cleanup cost cap insurance is generally unavailable.

Captives and pooling arrangements. Captives allow single corporations to self-insure through an insurance company they own. Group captives/pooling arrangements allow groups of companies, e.g., members of an association, to insure each other and share losses up to a high deductible and purchase reinsurance for catastrophes. Pooling arrangements solve the small sites problem by allowing coverage for aggregated small cleanup costs of multiple sites. They have many other advantages as well, including reduced premiums and costs and focused risk and claims management.

Structured settlements. Structured settlements use annuities to cover known cleanup and monitoring costs over a long term period where there is a fund available upfront for such coverage. EIA can provide a complete long-term liability assumption by combining structured settlements with an automatically renewable site pollution liability policy with coverage for institutional/engineering controls liabilities.

Environmental Insurance Agency, Inc.
618 Forest Avenue
Larchmont, NY 10538

Phone: 914-833-5100
Fax: 914-833-5102

Email:
sneuman@hickeysmith.com
www.enviroinsurance.com

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