By Brett Amick, Senior Vice President and South Central Regional Manager
A west Texas agent approached Beacon Hill Associates to help find a creative solution for one of their accounts. Their client is a pipeline owner/operator moving methane gas from landfills to processing facilities in six different states. The issue was that their client had separate named insureds and insurance programs for each state and wanted our agent to combine them all into a single insurance program.
Their client has a number of different contracts; once we were able to review all the account information, it was clear that they needed a thorough and comprehensive policy as well as a $25M Excess policy to sit over the entire program. This required a great deal of communication with the client to gather all the information needed to compile a submission encompassing all the locations and named insureds, including a full explanation of the operations at each location. Most of the locations only had the pipeline exposure, but at one location they also operated the processing facility.
Beacon Hill set out to place the General Liability (GL), Contractors Pollution Liability (CPL), Environmental Impairment Liability (EIL), Hired and Non-owned Liability (H&NO), Transportation Pollution Liability (TPL), and Non-owned Disposal Site coverage (NODS). After speaking with our agent to review the master service agreements, we believed these lines effectively would cover their client for all of their exposures. With all this in hand we approached the marketplace to get feedback on our carriers’ appetite for this risk.
Due to the client’s operations and coverages needed, we received many questions and concerns from our carrier partners. Many declined due to the pipeline exposure and/or the coverage requested, but in the end we had six markets willing to entertain the account.
Our options allowed us to place the GL/EIL/CPL/H&NO and TPL with a $1M/$2M limit and $5k deductible, and the lead $5M Excess policy with one carrier. We placed the $20M Follow Form Excess with two additional carriers in order to fulfill the client’s needs. Our agent was thrilled because they only controlled one piece of the account when they first approached us, and now they write the entire program for their client. The insured felt better knowing they now have broader coverage and a more consolidated program which adequately satisfies their various master service agreements. The Beacon Hill team was happy to help design a creative solution customized to this client’s needs, putting to use our product knowledge and strong carrier partnerships.