News From Beacon Hill – November 2014

Myth: My clients don’t handle hazardous materials, so they don’t need environmental coverage.

All too often, brokers don’t offer environmental insurance to their clients because they don’t handle hazardous materials. It is a coverage many brokers don’t understand in detail and in the eyes of their clients they would not look like experts once the conversation went deeper than discussions of hazardous materials or storage tanks. Brokers often think this is an expensive coverage and their clients would not be interested in spending the money for it.

Here is a link to an article about an office building, typically one of the most innocuous real estate sectors for environmental risks, having to be tested for lead because there had once been a firing range on the second floor of the building.

This is an example that it’s not what your client may be doing that may have the most impact on environmental costs that they may incur–it’s what their neighbors are doing! Very seldom is there an environmental incident in a building, or section of town for that matter, that will not impact the rest of the building or section of town. The effect may be felt in the form of bodily injury claims, damaged property, business interruption, dimunition in property values, or lack of access to a location due to environmental or emergency response actions.

With the number of environmental carriers competing for business – pricing is more competitive than it has ever been. And if you don’t feel comfortable talking about the coverage to your client, we can help you with that. We can provide resources such as our Environmental Blueprint Materials that will explain the exposures to any industry you request information about or offer live discussions with our environmental insurance experts.

Need to Clarify an Environmental Insurance Term? Check out our Glossary

There are many phrases and acronyms used to describe environmental coverages and exposures. Understanding these terms is crucial to knowing what is actually included (or not included!) in a policy. While insurance companies may define their terms differently, there are some basic words/phrases that should be understood when discussing pollution coverage with your clients. See our glossary for a list of these basic definitions.

Recent Success Stories

$2.1M Environmental abatement contractor purchased GL/PL/CPL and a $5M Excess policy for a total of $21,000.

$9M Soil/water remediation contractor purchased General Liability, Contractors Pollution Liability, Auto, Workers Compensation, and a $10M Excess policy for $540,000.

$2.2M Cable contractor purchased a $1M/$2M Contractors Pollution Liability policy for $3,894.

$11.3M Equipment rental company purchased a $3M/$3M Contractors Pollution Liability policy for $10,316.

$180k Asbestos abatement contractor purchased General Liability, Contractors Pollution Liability, and E&O for $2,500.

Landfill with recycling/separation center (2 locations with revenues of $8.5M) purchased GL/Premises Pollution Liability, Auto, and a $5M Excess policy for a total of $56,349.

A commercial office building/1 location purchased Site Pollution Liability for $3,000. Coverage includes NODs and 3rd party Transportation Pollution Liability.