By Brett Amick, Assistant Vice President
One of the most difficult jobs a retail producer has is making sure he or she has asked a client all the correct questions to address potential exposures. We work with our agents to analyze each of these accounts, and for each, ask questions to determine which have completed operations exposures versus products exposure, and then identify which lines of pollution coverage may be needed.
In a recent account we wrote, the insured manufactures, distributes, repairs, and tests valves, pumps, and gages for the oil and gas industry. They also take their mobile work trailers to a customer’s site and do the work there when needed. In talking with the retail agent about this client, they let me know that the insured thinks they only have a pollution exposure.♦ The agent has a standard lines General Liability policy with a pollution exclusion and is seeking our help on covering any pollution exposures. After asking a series of questions about the operations, we ultimately discovered that only 20% of the insured’s receipts come from working on a third party site. The other 80% comes from the manufacture, repair, and service work the insured does on their own location. The client actually needs additional lines in order to cover all operations: Contractors Pollution Liability is needed to cover the insured when he is performing work on a third party site. ♦ Transportation Pollution Liability is also needed since the insured is transporting, loading, and unloading chemicals with them when they are working on a third party site. ♦ Products Pollution Liability is necessary for 100% of their work because even when they are on a third party site, they have both the products and completed operations exposures while repairing and servicing valves, pumps, and other oilfield equipment. ♦ Premises Pollution Liability coverage should be purchased for their owned and leased locations to cover the storage and use of chemicals and waste products. The insured uses several chemicals in their daily operations and has a significant exposure to on site and off site pollution. ♦ Non-Owned Disposal site coverage is needed since the insured manufactures, services, and repairs oil and gas equipment and must dispose of waste products. This coverage is vital in the legacy protection of such an operation.
The insured was surprised to learn about all the exposures they actually have, but after providing an overview of the insurance products needed to address possible problems, as well as some claim scenarios, they understood the need to protect themselves from potential loss. By explaining these exposures and taking the time to present the right information to the insured, the agent was able to strengthen the relationship and also add several lines to the account. It’s always a good idea to carefully review an insured’s operations and ask questions to learn about their processes to make sure all potential exposures are covered.