News From Beacon Hill – February 2015

Opportunities for New Business: Roustabout Contractors

‘Roustabout’ is a term that commonly refers to workers in oil fields that perform various duties to assist crews in drilling and extracting oil. Much of the work that roustabouts do includes setting up oil well “heads”, maintaining saltwater disposal pumps, keeping work areas free of debris, visually inspecting lines for leaks or spills, repairing pipe leaks, and preventing leaks when they do occur by cleaning up and isolating the areas. Activities with the potential for environmental risk include:

  • – Clearing/site grading/excavation activities on the jobsite
  • – Inadvertently releasing contaminants at a job site or brought to a job
  • – Transportation of waste or materials to or from a job site
  • – Disposal of waste at non-owned facilities
  • – Insured’s owned premises

Environmental insurance solutions to address this class of business include:

Contractor Pollution Liability Insurance Policies – can be designed to protect oil field contractors and consultants from third party liability claims against them for bodily injury, property damage and cleanup costs. Enhancements to this coverage may include professional liability coverage, transportation coverage and non-owned disposal site coverage.

Site Pollution Liability Insurance Policies – can be designed to protect oil field contractors and consultants from first party cleanup and third party liability claims against them for bodily injury and property damage at their owned locations (typically where they store their chemicals and equipment). Enhancements to this coverage may include transportation coverage and non-owned disposal site coverage.

For more about energy-related coverages, click here.

Do ALL Sites & Facilities Have an Environmental Exposure?

Sites of all kinds―whether it’s an office building, warehouse, or recycling facility―have a premises pollution exposure. Owners and managers of sites and facilities should not only understand all the potential problems that can currently impact their properties, they should also understand that activities that previously took place on the property can also continue to impact it in the future. Additionally, they should be aware that pollution problems from neighboring properties could migrate onto their land. It’s important l to understand the differences in policy forms and language to watch for in a Premises Pollution policy. Learn more.

Recent Success Stories

$5.7M Excavation contractor purchased a $2M/$2M CPL policy, including TPL and Blanket Additional Insured, for $5,008.

$12M Pipeline contractor purchased a $5M/$10M CPL project policy for $18,639.

Bulk storage terminal purchased a 3-year $6M/$6M Premises Pollution Liability policy for $45,700.

$10M Manufacturer of air pollution control devices purchased GL/CPL/Products Pollution/Hired and Non-Owned Auto and a $9M Excess policy for $57,425.

$48M Company specializing in the construction of aboveground storage facilities and pipelines & crude oil transportation purchased EIL/CPL ($10M/$10M limits) and a $15M Excess policy for $281,000.

$2.5M Electronic recycler/data destruction contractor purchased GL/CPL/ Auto and a $4M Excess policy for $62,000.