By Wallace L. Clapp, Jr., CPCU
Environmental impairment has been defined as "the emission, discharge, disposal, seepage, release or escape of any liquid, solid, gaseous or thermal irritant, contaminant or pollutant into or upon land, the atmosphere or any watercourse or body of water." This definition was used in an early environmental impairment liability insurance policy issued by Wohlreich & Anderson, a surplus lines brokerage firm, in 1979. Even though factories polluted the air and water all through the industrial boom in the early part of the 20th century, the country did not do much to restrict those offenders from continuing to pollute.
Then, concern for the diseases caused by certain pollutants began to trouble government officials and legislators. Numerous incidents were reported in the early 1960s and 1970s, particularly pollution at the Love Canal site on the Niagara River in New York. Here evidence of serious chemical waste dumping was discovered in the mid-1970s. The incident prompted the insurance industry to issue an exclusion to the standard CGL policy.
The exclusion in the 1973 edition was intended to stop liability coverage for gradual pollution losses of the type that fit into the definition of environmental impairment as described above. The full exclusionary language in the 1973 form is as follows:
"It is agreed that this insurance does not apply to bodily injury or property damage arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants into or upon land, the atmosphere or any watercourse or body or water; but this exclusion does not apply if such discharge, dispersal, release or escape is sudden and accidental."
It is the "sudden and accidental" portion of the exclusion that caused the most ambiguity in the policy and led to continuous litigation between insureds and insurers as to whether environmental claims for liability and cleanup were covered or not. No clear precedents were set in any courts on this litigation, and the costs for coverage and cleanup generally were eaten up by costs of litigation.
Since that time the exclusion was amended in 1985 to be an absolute exclusion of environmental impairment. The exclusion applies: at or from any site used by the insured or others for the handling, storage, disposal, processing or treatment of waste; or any site on which the insured or contractors work in performing operations, or in testing, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing pollutants.
There have been fewer allegations of ambiguity on the 1985 and later forms of the CGL policy since there is no longer any mention of the "sudden and accidental" language. Nevertheless, these forms leave a big gap in liability protection needed by industrial firms, contractors and consultants involved in handling, transporting, storage, disposal and treating of hazardous waste; or in testing, monitoring, cleaning up, removing or abating pollutants.
It is this gap that has been picked up by special policies issued by a variety of markets that have arisen in the 1980s and to date. The market is slowly growing in capacity, broadening in terms and conditions due to the entry of new insurers.
The market has been difficult to assess as there are so many changes in the regulations for environmental protection, not only in the amendment of federal and state legislation, but also in emphasis given by the Environmental Protection Agency with regard to legislation already enacted. For example, the EPA required owners of underground fuel storage tanks to be financially responsible for injury or cleanup from leaking tanks. This liability, set at $1 million per occurrence/$2 million aggregate for most risks, was delayed several times to allow for the development of state funds and insurance markets to cover the liability, particularly for smaller risks. Eventually, the insurance market lost its emphasis and state funds began to dry up because insurers could not sell insurance in the face of so much indecision on the part of the regulators.
Also in the case of asbestos abatement contractors, new methods of abating the risk have been developed; and now many contractors are containing the asbestos in the building rather than stripping out all of the harmful fibers.
Further complicating the growth of the market for environmental liability insurance is the multitude of substances that are under the EPA regulatory authority because of the enactment of laws designed to protect humans and animals from sickness or extinction. According to the EPA, the federal government since the birth of the Environmental Protection Agency in 1970, has enacted the following major regulatory laws:
* The Clean Air Act, a comprehensive federal law that regulates air emissions from area, stationary and mobile sources. The EPA is authorized to set National Ambient Air Quality Standards (NAAQS) to protect public health and environment. The ultimate goal is to set NAAQS in every state. The act was amended last in 1990 to direct states to develop implementation plans to achieve maximum pollution standards and to address problems such as acid rain, ground-level ozone, stratospheric ozone depletion, and air toxins.
* The Clean Water Act is a 1977 amendment to the Federal Water Pollution Control Act of 1972. It gives the EPA authority to set effluent standards and continue the requirements to set water quality standards for all contaminants of surface waters.
* Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) provides a federal "Superfund" to clean up controlled and abandoned hazardous waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants.
EPA cleans up sites where potential responsible parties (PRPs) cannot be identified or located, or when they fail to act. EPA obtains private-party cleanup through orders or consent decrees. The costs are recovered from financially viable individuals and companies once a response action has been completed.
Superfund legislation has been debated by Congress for the last few years, and the question of retroactive liability still is the stumbling block for ultimate passage of amendments which will be beneficial to all parties. Insurers already burdened by the "long tail" of environmental claims dating back to the 1970s are seeking relief from having to indemnify insureds (PRPs) for cleanup expenses by fixing a retroactive date after 1985 when the CGL policy was changed to an "absolute" environmental impairment exclusion.
* The Endangered Species Act provides a program for the conservation of threatened and endangered plants and animals and habitats in which they are found. The EPA has the power under this act to issue emergency suspensions of the use of certain pesticides to cancel or restrict their use if an endangered species is adversely affected.
While the regulations of EPA under the ESA do not generally produce environmental liability claims, it is important to consider the regulations as a risk when involving such businesses as farming, forestry, park preserves and even real estate developers and airports which often face risks of altering the habitat of certain endangered species. Business interruption, extra expense and loss of income losses can be identified.
* Federal Insecticide, Fungicide and Rodenticide Act provides financial control of pesticide distribution, sale and use. EPA was given authority to study the consequences of pesticide usage and to require users to register when purchasing pesticides. Later amendments of the act require users to take examinations for certification as applicators of pesticides.
These regulations apply to risks such as farmers, utility companies, exterminators, golf club owners, resorts and others who use such substances to eradicate harmful and annoying pests.
* Oil Pollution Act of 1990 strengthened EPA's ability to prevent and respond to catastrophic oil spills. The agency has established a fund financed by a tax on oil to clean up spills when the responsible party is incapable or unwilling to do so.
* Resource Conservation and Recovery Act (RCRA) gives the EPA the authority to control hazardous waste. This control includes the generation, transportation, treatment, storage and disposal of hazardous waste. The 1986 amendments to this act gave the EPA the authority to address environmental problems that could result from underground tanks storing petroleum and other hazardous substances.
* The Safe Drinking Water Act was established to protect the quality of drinking water.
Coverages written
A variety of special coverages has been developed in the past 10 years since the first pollution liability policy was written. Most of the policies have sprung up because of the enactment of new regulations by EPA or requirements making responsible parties, who are financially able to do so, pay for cleanup or for bodily injury and property damage caused by hazardous waste.
The following are key coverages or combinations of policies available on the marketplace today:
Environmental impairment liability--This policy was developed to close the gap in basic liability coverage that was created by the exclusion in the 1973 policy form. The policy is used to provide insureds, such as industrial and commercial facilities, transporters, contractors and others, with coverage for environmental exposures. Certain specialty underwriters have developed the coverage which covers bodily injury and property damage liability including cleanup costs. Sudden and accident contamination also is covered. The risk is subject to stringent technical inspection by professional consultants prior to consideration for coverage. Limits are available from $10 million to $70 million, depending on the market.
Environmental contractors liability--Remediation contractors have exposures to environmental risks when they work on buildings to strip out or otherwise abate hazardous substances such as asbestos, lead paint, and other toxic materials. The coverage for asbestos abatement responded to a mandate by EPA to clean out public buildings. New methods of abating the asbestos risk by containment have now become the preferred treatment, and insurers have adapted environmental liability coverage for this process. Lead paint abatement contractors work mostly on old tenement buildings which were painted with lead-based paint. Although lead-based paint was not used after 1978, about one-half of America's 80 million public housing units have unsafe levels of lead. New areas of coverage apply to contractors who work on remediation of soil, water and air contaminants.
Environmental consultants errors and omissions--This policy protects the insured consultant for errors and omissions claims resulting from pollution conditions. The policy covers advice given to third parties about environmental conditions. In combination with pollution liability coverage, the policy also covers liability for claims against the insured resulting from pollution conditions that arise from the performance of professional services.
Contractor pollution liability--This policy provides both sudden and accidental and gradual pollution coverage for operations performed by the remediation contractor, including a specified term of completed operations coverage which applies after the job is completed. The policy may be combined with the contractors general liability coverage or with coverage for the environmental consultant to give complete protection for the contractor who also has a consulting exposure.
Environmental testing labs--Contractors, consultants and engineers need the service of special testing labs that sample and analyze ground water, waste and waterways, air quality, soil and hazardous waste. These labs may be independent contractors or may be connected with environmental consultants or engineers. Separate insurance programs are available for testing labs involved in acoustics and vibration, biological, chemical, construction materials, electrical, geotechnical, asbestos, mechanical and thermal testing.
Environmental site assessment--This is more like an inspection that accompanies the review and application for lenders environmental cost coverage or the development of brownfields property. The assessment coverage is sold to real estate buyers and lenders to protect them from Superfund-type liabilities arising from a commercial property that has contamination undetected at the time of the sale. Unexpected remediation costs could arise if it is later discovered that the property would have an environmental contamination problem.
Lenders environmental cost insurance--Financial institutions are becoming increasingly concerned about their potential liability for cleanup of property in the event that property on which they have made loans later is found to be contaminated. Insurance programs have been developed to protect real estate owners and lenders from government, state and court mandated cleanup of contamination that was present but undetected at the time property was purchased. Costs associated with site assessments and defense costs resulting from liabilities are covered. An amendment of federal laws has eased the concern of lenders to a certain extent.
Hazardous waste storage and disposal facilities--Federal and state regulations such as the Resources Conservation and Recovery Act and the Motor Carrier Act of 1980 have required financial responsibility from the hazardous waste industry. The EPA set a timetable for fulfilling the requirements that apply to landfills, land impoundments and land treatment facilities. The policy covers companies actively involved in the generation, processing, transporting or disposal of hazardous waste. Coverages written include general liability, auto liability, workers compensation, umbrellas and property. The MCS-90 DOT endorsement is included where necessary.
Hazardous material haulers--Coverage is available for transporters of hazardous waste materials. It is designed for haulers of such materials as coal, tar, asphalt, sand and gravel, construction material, steel, equipment and machinery, chemicals and other toxic materials. Auto liability and physical damage is written on the truckers form. General liability coverage is altered to offer pollution coverage and the MCS-90 form is available.
Pollution cleanup indemnity--This coverage is mandated for vessel owners under the Federal Water Pollution Control Act and the Water Quality Improvement Act. Policies are available to cover cleanup of oil spills and discharges of other toxic substances. Certain environmental liability policies pay for premises or off-premises liability for cleanup. Most coverage for cleanup of Superfund sites is not covered.
Underground storage tank pollution liability--This policy was developed because of the need of service stations and oil jobbers to comply with the financial responsibility requirements of EPA. The tank owner/operator must demonstrate financial responsibility to pay the cost of cleanup of leaks and resulting damage to others. Limits required are $1 million per occurrence for petroleum marketers and $500,000 for non-marketers. Most underwriters offer limits up to $1 million/$2 million.
Environmental surety bonds--Insurers specializing in covering remediation contractors have expanded into the field of surety bonds. Standard surety companies avoid any bonds on contractors in hazardous waste removal or environment contractors.
Developing a market
According to a report, "The Environmental Insurance Market--Rapid Emergence to Stable Growth," authored by Mark Vuono, executive vice president of ECS Underwriting, the estimated premium growth for the environmental impairment liability market has grown from $75 million in 1985 to between $800 and $900 million in 1995. Three primary insurers stand out as market leaders in the field of environmental impairment insurance. These three companies--AIG, Zurich-American and Reliance National--accounted for approximately 75% of the market in 1995.
Since 1985, the mix of insureds by customer type has changed from principally transporters and fixed facilities to, by 1995, a balance of customers including transporters, contractors, consultants and facilities, according to a study made by ECS Underwriting.
Primary markets
American International Group is the leader of the primary insurers. It was the first company to enter the market. Commerce & Industry Insurance Co. (C&I), that group's primary environmental insurance company, writes a complete line of pollution and casualty coverage for environmentally sensitive businesses.
C&I has underwriting offices in 15 cities across the U.S. and Canada. Limits of liability for all programs recently were raised to $70 million. Insurance coverages provided by C&I include:
(1) The Environmental and General Liability Exposures program (EAGLE), which combines CGL and pollution legal liability policies. A complete insurance program for an insured may be covered under one policy with a single limit.
(2) The General Contractors Pollution Liability insurance policy (GCPL) covers claims of third-party BI and PD arising from pollution conditions caused while the contractor is working on customers' sites. The insurance applies to sudden and gradual pollution events and responds to cleanup costs both on and away from the worksite.
(3) Contractors Operations & Professional Services coverage (COPS) fulfills the needs of full-service environmental firms which perform field operations as well as professional services.
(4) Pollution Legal Liability Select (PLL Select) is a package site-specific environmental insurance policy that lets an insured design a program that fits the insurable risks of the facility. The policy includes site-specific coverage as well as on-and-off site coverages for property damage, bodily injury and cleanup costs triggered by pollution conditions.
(5) Owner Controlled Insurance Program (OCIP)--Asbestos is a policy that fulfills the need of owners to have adequate limits for any one project. The contract covers all contractors and consultants working on a single project for a blanket annual aggregate limit covering all work performed in the course of a year.
(6) Cleanup Cost Cap policy indemnifies the insured for financial losses that arise when the anticipated cost of a remediation project is exceeded. The policy is built over a self-insured retention equal to the cost of the cleanup plus a buffer layer. It is designed to address the risk associated with beginning an environmental remediation project.
(7) The surety department of C&I provides bid, performance and payment bonds for qualified environmental contractors. Capacity of the company is $7.5 million for an individual job and $25 million in the aggregate.
Contact the marketing director of C&I at 1200 19th St. NW, Ste. 605, Washington, DC 20036; (202) 861-8659; FAX 202-775-0137. www.access.aig.com
The second major insurer writing varied environmental insurance products is ECS Underwriting. This environmental specialty underwriting manager was founded in 1979 specifically to provide a market for exposures of hazardous waste transporters and generally for the environmental market which was just emerging. It first began as a managing general agent for the National Union Insurance Co. (AIG), but in 1987 it became an underwriting manager for Reliance National Insurance. The scope of the program with Reliance National has expanded to include any firm whose processes affect the environment. Limit of liability available is $40 million.
The firm has established a group of environmental consultants (ECS Consulting) and has taken on a third-party administrator specializing in handling environmental claims (environmental claims administrators).
ECS has established customer business units to handle coverage separately for environmental services, construction and contractors, transportation, chemical facilities, and industrial and commercial facilities business exposures.
Casualty coverages available are for business autos, truckers, commercial general liability, workers compensation, pollution liability, pollution cleanup, professional liability for consultants and environmental labs.
The environmental services business unit provides insurance and loss control solutions for customers whose operations include remediation contracting and environmental consulting. Consultants, including architects and engineers; contractors, laboratories, and environmental/remediation contractors are handled by this unit.
General construction contractors are covered for all elements of casualty coverage, as well as bonding.
The newest customer business unit has been established by ECS Underwriting to meet the needs, especially in the area of pollution liability, of the chemical industry. Chemical manufacturers and distributors are offered comprehensive insurance protection without the pollution exclusion.
ECS has a program for smaller environmental firms. Coverages offered are CGL, professional liability, contractors pollution legal liability, pollution legal liability and employee benefits liability. Limits are available up to $2 million per occurrence/aggregate.
A popular product offered by ECS is the Pollution and Remediation Legal Liability form (PARLL), providing third-party BI and PD liability in addition to on-site remediation expenses for cleanup at the covered location. The policy is sold to a broad range of business and industry, including manufacturers, chemical distributors, real estate, educational facilities, dry cleaners and golf courses.
Another coverage recently developed by ECS is closure/post closure care insurance, which meets the financial assurance requirement of hazardous waste treatment, storage and disposal facilities (TSDFS) that funds be available to properly close the facility and maintain it after closure as necessary, once its useful life has expired. The policy also covers the needs of a facility that has been abandoned, is unpermitted, or whose owner/operator has become bankrupt.
Information on ECS is available from Christine Weirsky, media relations specialist, ECS, 520 Eagleview Blvd., P.O. Box 636, Exton, PA 19341-0636; (610) 458-0570; 800-ECS-1414; FAX 610-458-8667. www.ecsuw.com
The third primary underwriter of environmental coverages is Zurich-American Specialties Co. Coverages written by this subsidiary of Zurich-American Insurance Group are: environmental impairment liability, underground storage tanks, property transfer coverage, and remediation stop loss.
The environmental impairment coverage provides BI and PD liability to a third party, as well as cleanup. The policy also protects the insured's exposure at specified disposal sites owned by others and contingent transportation coverage for liability of hazardous substances transported by others. Limits are available to $30 million.
Contractors environmental impairment liability is written up to $20 million. Asbestos and lead paint abatement contractors are written with limits up to $10 million. Professional liability up to $10 million is written for consultants, engineering firms, and laboratories.
Property transfer insurance protects property owners and investors including financial institutions, real estate investment trusts, retirement pension fund managers and property portfolio managers from unknown environmental impairment that existed before the owner acquired real estate. The policy is a multi-year, claims-made contract, providing up to $10 million capacity.
Remedial stop loss coverage assures that cleanup costs above a self-insured retention will be capped to the available limit. Capacity is available to $10 million.
The underground storage tank coverage allows above ground and underground storage tank owners to comply with EPA's financial regulations. Limits are written up to $5 million/$5 million.
Contact Thomas C. Routson, vice president, marketing, Zurich-American Specialties, One Liberty Plaza, 53rd Floor, New York, NY 10006; (212) 748-2313; 800-382-2150; FAX 212-513-7867. www.zurichamerican.com
American Safety Insurance Group was established in 1986 to provide coverage for asbestos abatement contractors. In 1988 American Safety Risk Retention Group was formed under the federal Risk Retention Act. The American Safety Casualty Insurance Co., founded in 1993, writes surety bonds for contractors covered under other policies of the group. It is treasury listed and admitted in 42 states and DC. Single bond limits up to $10 million can be written.
The company provides liability insurance designed specifically for asbestos and environmental remediation contractors. It also writes professional liability insurance for environmental consultants, testing laboratories, industrial hygiene firms, toxicologists, UST testers, safety engineers and other environmental professionals. Surety bonds are written for contractors and consultants for general construction, as well as asbestos and environmental projects.
The company recently instituted a workers compensation insurance program for environmental remediation contractors and consultants. Legion Insurance Co. is the underwriter.
The group designed a liability policy to meet EPA requirements under Subtitle D regulations for final closure and post-closure of municipal solid waste landfill owners and operators. In addition, the company provides insurance for remediated properties when the owner, developer or lender needs assurance that the remediation project has accomplished its goal of cleanup. Limits for this program are $1 million/$1 million.
Limits for professional liability coverage are up to $5 million, and limits for general and pollution liability go up to $11 million.
Contact Ashley Russ, director of marketing, American Safety Insurance Group, 1845 The Exchange, Ste. 200, Atlanta, GA 30339; (770) 916-1908; 800-388-3647; FAX 770-916-0618.
American Signature Underwriters, Inc., and its sister company, Specialty Underwriters, Inc., manage the environmental remedial underwriting facilities of the Great American Insurance Cos. The firm writes general liability/pollution liability/professional liability; auto liability; workers compensation; and property insurance for risks involved in the investigation and/or remediation of waste and pollutants. The company does not write transportation, storage or disposal facilities, or site-specific, first-party environmental impairment liability (landfills or generators of waste). Limits up to $10 million are available for general, pollution, professional and auto liability. Property limits are up to $3 million.
Contact Leonard J. Mikulski, American Signature Underwriters, 515 Main St., P.O. Box 5370, Cincinnati, OH 45201-5370; (513) 333-2220; FAX 513-333-2221.
Beacon Hill Associates writes all types of environmental liability coverages including workers compensation. Their limits, which vary as to coverages and carriers, go up to $10 million. Beacon Hill writes business countrywide through 20 or more A-rated carriers. Contact Bill Pritchard, Beacon Hill Associates, Inc., P.O. Box 456, Ivy, VA 22945; (804) 979-0342. 800-596-2156. FAX 804-979-8964. www.bha.com
Bonding & Insurance Specialists Agency, Inc., provides coverage for contractors engaged in asbestos and lead abatement, as well as all forms of environmental contracting. The firm also writes professionals engaged in environmental consulting, providing them with general liability, with professional and pollution coverage extensions. Limits for contractors are $5 million per occurrence; aggregates are available to $25 million. Umbrellas are available to $10 million.
The company also is a program administrator for a voluntary workers compensation program. They are also a leading facility for environmental bonding nationwide. The three companies providing environmental programs are: American Alternative Insurance Co. (A+XII), Credit General Insurance Co. (A-VI) and Reliance National (A-XII).
Contact Bob Stillman, Bonding & Insurance Specialists Agency, 717 S. Wells St., Chicago, IL 60607; 800-346-1031; FAX 312-427-4581.
Crump Group, Environmental Division is a wholesale broker specializing in environmental coverages. The firm services agents and brokers worldwide. This office provides coverage for all types of environmental risks including contractors and consultants. Maximum limit available from one carrier is $60 million; maximum capacity in the marketplace is well over $100 million.
Crump uses the following markets to provide coverage: AIG, ECS, Zurich, United Capitol, General Star, American Empire, Evanston and Admiral.
Contact Julie Cully, senior vice president, Crump Environmental Risk Division, 230 W. Monroe, Ste. 2260, Chicago, IL 60606; (312) 899-1480; FAX 312-899-1481.
Environmental & Commercial Insurance Agency provides all types of coverages for environmental risks. The programs include: specific site environmental exposures, contractors and consultants general, pollution and professional liability, above and underground storage tanks, transportations risks, waste facilities, brownfields risks, closure bonds, property transfer programs, and contractors surety bonds.
Limits generally are basically $1 million extending to a maximum of $10 million for most specific site, contractors and consultants policies. Underground storage tank program has limit of $1 million/$2 million. The transportation and trucking program provides limits up to $5 million.
ECI is the underwriting manager for the following companies: Commercial Underwriters (A+X), Empire Fire & Marine (A+VIII), Underwriters Insurance Co. in Canada, United National (A+VIII), Acceptance (A-VIII) and Century Surety (A-VI).
Please contact Susan Crites, marketing manager or Chris Timm, president, Environmental & Commercial Insurance Agency, 2400 Corporate Exchange Dr., Ste. 270, Columbus, OH 43231; (614) 891-3200; 800-878-3242; FAX 614-891-5757.
ERIC Underwriters Agency, Inc., is a subsidiary of ERIC Group, which was founded in 1987 to write asbestos and lead-paint abatement liability for contractors. The firm also writes asbestos in place liability, which covers the liability to third parties including tenants and contractors for injuries caused by the release of asbestos which is left in place in existing buildings. The policy also covers business interruption expenses to third parties as the result of an asbestos release.
Another coverage written by ERIC is property transfer liability designed to protect owners, purchasers and lenders against environmental liabilities arising from Superfund-type statutes imposing liability even if the owner or lender was not involved or aware of any contamination. Other policies written by the agency are Owner Controlled insurance for contractors remediation activities, remediation stop loss insurance and post-remediation insurance.
Zurich-American Insurance Group is the underwriter for these policies, and the limits of liability are $10 million.
Contact Eric Blommel or Steve Hargreaves, executive vice president, ERIC Underwriters Agency, 7257 S. Tucson Way, Englewood, CO 80112; (303) 792-9441; FAX 303-792-5402. www.ericcompanies.com
Freberg Environmental, Inc., provides commercial general liability, contractors pollution liability and professional liability for environmental consultants, engineers and contractors. The limits of liability for this program underwritten by Gulf Insurance Group (A+IX) are $5 million/$5 million. Coverage is available in all 50 states.
Another coverage offered is a hazardous waste hauling program for BI and PD liability, physical damage, pollution liability and truckers general liability. The underwriter is Everest National Insurance Co. (A-X). The program currently is available in FL, GA, IL, MD, MI, MN, MO, ND, OH, PA, SD, TX and WI. Limits are $5 million.
A third program is for analytical testing labs--for general liability and professional liability. Sample disposal liability and environmental impairment for designated lab premises may be endorsed ($100,000 limits). The program has limits of $3 million. It is available in all 50 states and is underwritten by United National Insurance Group (A+).
Contact Michael J. Hill, president, Freberg Environmental, 1675 Broadway, Ste. 2210, Denver, Co 80202; (303) 571-4235; 800-377-4152; FAX 303-623-8101.
Independent Insurance Wholesalers, Inc., is a managing general agent operating in AK, CA, OR and WA. The firm offers general liability and pollution liability for contractors, consultants and engineers. In addition, the firm makes available pollution coverage for owners with the contractor named as an additional insured.
Carriers represented by IIW are: Admiral, Agricultural E & S, General Star and AIG.
Contact Bob Stahl or Tom Sawyer, Independent Insurance Wholesalers, 722 S.W. 2nd Ave., Ste. 340; Portland, OR 97204; (503) 224-1956; FAX 503-2245-3010.
Morefar Marketing, Inc., is an affiliate of American International Cos. The firm is a program manager for Commerce & Industry Insurance Company's asbestos contain policy, a third-party liability coverage for claims arising from asbestos release at covered locations. The limit on this policy is up to $10 million.
Contact John Woerster, Morefar Marketing, 501 Carr Rd., Wilmington, DE 19809-9962; (302) 761-5600; FAX 302-761-5659.
National Environmental Coverage Corp. writes a wide variety of environmental liability coverages, including: general and pollution liability for asbestos and lead abatement contractors; general and pollution liability for underground storage tank and other hazmat contractors; general, professional and pollution liability for environmental consultants, laboratories and engineers; transportation pollution coverage for hazardous material haulers; environmental impairment liability; site pollution liability; underground and above ground storage tank pollution; and workers compensation.
Limits are available up to $10 million or higher in certain cases. Policy coverages are available to agents and brokers in all 50 states. Most insurance companies are A rated.
Contact Christina L. Holmes, National Environmental Coverage Corp., 747 Chestnut Ridge Rd., Ste. 305, Chestnut Ridge, NY 10977; (914) 425-2333; 800-552-0230; FAX 914-425-2853. www.necc.com
Professional Design Insurance Management Corp. is a wholesale broker providing environmental coverage for environmental engineers and consultants and for environmental contractors.
The professional liability policy includes pollution coverage. Limits available are up to $5 million either on a primary or excess basis. The contractors policy covers third-party liability as a result of environmental impairment. Up to $25 million limits are available. Environment impairment coverage is also available for a wide variety of operations. Limits are $30 million. General liability for companies with environmental exposures can be written up to $5 million.
Agents and brokers can access this facility in all 50 states. Major markets are Gulf, ECS and United Coastal.
Contact Thomas McComb, Professional Design Insurance Management, P. O. Box 1298, Noblesville, IN 46061; (317) 776-1290; FAX 317-776-1260. www.pdiins.com
Professional Indemnity Agency writes professional liability insurance for environmental consultants including testing labs. Maximum limit is $5 million. The Legion Indemnity Co. (A-VIII) and in some cases Western Indemnity (A-VI) are used. Coverage is available in all states except DE, MA, ME, NH, RI and VT.
Contact Edward Donnelly, CPCU, vice president, Professional Indemnity Agency, P. O. Box 130, Pleasantville, NY 10570; (914) 747-1818; FAX 914-747-3737.
Quaker Environmental, a division of the Quaker Agency has markets for environmental contractors (general/pollution/professional liability; auto liability and physical damage; property and inland marine; and workers compensation/employers liability). Limits are available to $10 million for liability and $3 million for casualty. Other coverages available are professional liability for consultants; liability for asbestos and lead abatement contractors; and site pollution liability and workers compensation.
Limits of up to $50 million are available through this facility. Underwriters include: American Empire, Agricultural E & S, Fidelity E & S, United Coastal, United Capitol, Lloyd's, United National, General Star and Zurich. The firm serves agents in the New England states as well as CO, FL, GA, MD, NJ, NM, NY, NC, PA, SC, UT and VA.
Contact Tom Murphy, Quaker Environmental, P. O. Box 415, Sea Girt, NJ 08750-0415; (908) 223-6666; 800-447-4180; FAX 908-223-9072. www.qsr-insurance.com
RA & MCO Insurance Services is a managing underwriter specializing in professional liability coverages for architects, engineers and consultants. Environmental coverages available include pollution/professional liability policies for architects and engineers, environmental consultants and engineers. Testing laboratories and general contractors (design/build, construction managers) also are written. Limits up to $10 million are available.
Coverage is available to agents in all states. Underwriters include: Associated International Insurance Co. and Calvert (Gryphon Group), Zurich Re (U.K), Ltd., and Insurance Co. of the West.
Contact Grant Weaver or Thomas Keenan, RA & MCO Insurance Services, 2300 Clayton Rd., Ste. 600, Concord, CA 94520; (510) 685-600; FAX 510-685-1750. www.ramco-ins.com
United Capitol Insurance Co. is a member of Frontier Insurance Group. It provides general, profession and/or pollution coverages for the following classes of business exposed to environmental risks: asbestos/lead abatement contractors; environmental consultants engineers, civil, geotechnical or structural engineers and laboratories; all classes of environmental or non-environmental facility risks, including waste treatment, storage and disposal facilities, industrial and commercial operations, hospitals, bank portfolios; and real estate transfers. The company also provides surety bonds for environmental contractors written through Frontier Insurance Co.
The company is an excess and surplus lines carrier writing on a nonadmitted basis in all states, Canada and the U.S. possessions. It is admitted in AZ and WI. The company has a subsidiary, Olympic Underwriting Managers, Columbia, MD. Limits available are up to $10 million.
Contact Jon W. Peeples, vice president, environmental division, United Capitol Insurance Co., 400 Perimeter Center Terr., Ste. 345, Atlanta, GA 30346; (770) 677-0330; 800-355-9429, ext. 329; FAX 770-399-0771.
United Coastal Insurance Co. writes the following environmental coverages: contractors pollution liability; environmental consultants professional/pollution liability; storage and treatment facilities; asbestos and lead abatement contractors liability and consultants professional liability; and in-place asbestos and lead in-place liability. Limits are available to $10 million.
United Coastal has no general agents or managing general agents. All submissions can be presented to the company through excess and surplus lines brokers on an open basis.
Contact Henry W. Nozko, Jr., president, United Coastal Insurance Co., P.O. Box 2350, New Britain, CT 06050-2350; (860) 223-5000; FAX 860-229-1111.
U.S. Risk Underwriters, Inc., environmental division, writes a program of general liability and professional liability coverage for environmental consultants and test laboratories. Pollution endorsement and Superfund coverage is available. Effective May 1, 1997, the company made available a new program for contractors professional and pollution liability.
Limits for both programs are $5 million/$5 million. Underwriters used are Lloyd's and CNA International Re (A-VIII) for the consultants program, and Zurich Re, Ltd., (A) for the contractors program. The programs are available in all states.
Contact Greg Johnston, U.S. Risk Underwriters, environmental division, 925-B Capital of Texas Hwy. S., Ste. 235, Austin, TX 78746; (512) 328-3888; 800-926-9155; FAX 512-328-9710.
Whitcomb Insurance Services is a market for larger environmental exposures.
Contact Rudy Whitcomb, Whitcomb Insurance Services, 109 W. Torrance Blvd., Redondo Beach, CA 90277; (310) 798-6212; FAX 310-374-8171.
Worldwide Facilities, Inc., operates as a wholesale broker. The firm writes all types of environmental coverages including general/professional/pollution liability. The most popular classes include contractors, consultants and oil and gas exploration contractors and operations. Limits are available up to $50 million. Companies represented include: Admiral, General Star, United National, AIG, ECS, Reliance, Gotham, Zurich, United Capitol and United Coastal.
The firm services all agents in all states, but main emphasis is in the western, southern and southeastern states.
Contact Davis D. Moore, president, Worldwide Facilities, Inc., 3530 Wilshire Blvd., Ste. 1500, Los Angeles, CA 90010; (213) 380-4670; FAX 384-5180. *