News From Beacon Hill – March 2014

Products Pollution Liability – Not Just for Manufacturers

By Tracy Durham, Associate Account Executive

Although Products Pollution Liability is often considered for manufacturers, they are not the only ones who could be held responsible when a pollution condition results from a defective or damaged product. Companies that sell or lease goods to others, as well as companies that install, service, or recondition goods, have a products pollution exposure. These companies may not be covered or protected by the manufacturer’s policy and the manufacturer may not have Pollution coverage.

Non-manufacturing companies may perform a service related to the product. A Contractors Pollution Liability policy addresses the work performed by the company, but will typically not address product damage or defect. If your insured installs products and a pollution condition results from improper installation or damage caused during installation, the Contractors Pollution policy should address the situation. If, however, the product itself has a defect or damage not as a result of the installation or servicing then this would be addressed by a Products Pollution policy or endorsement. Read the complete article.

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Environmental Exposures Call for Agent, Broker Response

BHA’s President, Bill Pritchard, shares his views on the growing public awareness of the environmental impact on business in the January issue of Rough Notes. Read the complete article.

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Recent Success Stories

$2.5M Fire & water restoration contractor purchased GL/CPL/Occurrence Mold with Bailee’s Property coverage for $11,600.

$93.5M Industrial & refinery contractor purchased GL/CPL with a $10M Excess policy for $548,928. This insured had 2 Action Over death losses in the last 24 months.

Condo property – 181 units (built 1988, 2 USTs) purchased Premises Pollution Liability for $2,886.

An apartment complex purchased a 3-year Premises Pollution Liability policy (for well water treatment) for $7,300.

A tenant who stores oil-based products for their business in the scheduled facility purchased a 3-year, $1M/$1M Premises Pollution policy (with a 2002 retroactive date) for $11,716.

$1.3M Environmental well driller purchased GL/CPL/E&O/Auto and a $5M Excess policy for $ 41,147.