News From Beacon Hill – March 2015

Exposure Highlight: Fire & Water Restoration Contractors

Fire & water restoration contractors work on locations that have experienced natural or accidental disasters. These disasters may be small, such as a burst pipe, or bigger problems like fires, smoke damage, storm damage, damage from heavy rains, floods, tornadoes, hurricanes―even tsunamis. They can be devastating for the businesses that have to be restored; however, if a restoration contractor exacerbates or creates an adverse environmental condition during restoration activities, their client as well as their own restoration business, may never recover.

Restoration contractors have to be knowledgeable about every type of contracting activity because they may encounter various types of chemical mixtures, residue from fires, and spills. Some of these materials may be hazardous, non-hazardous, or a mixture of both. It is up to the restoration contractor to know how to manage these materials and have procedures in place so that they are not released further into the environment. The need for environmental coverage to address these concerns is crucial. For more information about this class of business and the insurance products that apply to them, contact us.

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Products Pollution Liability for Manufacturers & Distributors

Owners and operators of manufacturing and distribution facilities have a unique set of exposures stemming from activities that are part of their daily operations. These businesses must consider exposures relating to the manufacture of a product, as well as the handling and distribution of it.

Products Pollution Exposures

Products Pollution issues can occur as a result of a product failure or the discharge of pollutants from a product. Many General Liability (GL) and Product policies deny coverage for Bodily Injury/Property Damage, Clean up, and Defense arising from the discharge of pollutants from a product.

Products Pollution coverage is a package liability product available to many manufacturers and distributors. A combination GL/Products/Product Pollution Liability policy includes Bodily Injury, Property Damage, and Clean Up coverage for third party claims. The Products Pollution coverage part can be provided by either a standalone policy or by endorsement to the CGL and is available on an occurrence or claims made basis. Manufacturers and distributors of imported or domestic products should be covered in the event of a products pollution claim. Distributors selling products in the United States that have been made in a foreign country may find that they have no recourse for claims asserted against them relating to those products.

Who buys Products Pollution coverage?

Classes of business typically needing Products Pollution coverage include: industrial coatings, adhesives, aerosols, biodiesels, lubricants, plastics, rubber, industrial soaps, solvent, fertilizers, and any products that carry, contain, measure, move, or otherwise process pollutants such as: drums, tanks, pipes, tubing, pumps, valves, and compressor, or other machinery/equipment.

Learn more about coverage for manufacturers and distributors

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Resources for Agents & Insureds

We offer a number of resources to help you educate your clients on environmental exposures and the coverages that address them. From risk-specific coverage summaries and claim scenarios, to industry-specific price indications and customized web training, we will give you the tools you need to more effectively sell environmental coverage. Visit our Resources webpage.

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Recent Success Stories

$15M Refinery contractor purchased a $10M limit policy that includes GL/CPL/Auto and Excess for $773,366.

$35M Utility contractor (non-environmental drilling, electrical, and water line installation) purchased CPL/Professional ($2M) for $18,207.

$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.

$3M Waterproofing contractor purchased CPL/Professional for $5,160.

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

$1M Fuel cleaning contractor purchased GL/CPL/Professional for $8,687.