Protect Your Clients and the Environment

Unless you have placed pollution legal liability insurance for your clients, they are uninsured for environmental loss.  This is bad for the environment and can compromise your client’s reputation and financial security.

As insurance professionals you have played an important role in reducing the risk of your clients and the public at large in doing so by reducing property and casualty risk.  Environmental loss, however, has traditionally been our weak spot.

 

WHY?

No Commercial General Liability Coverage. This is little to no insurance coverage for pollution liability on the ISO Commercial General Liability form.  The absolute Pollution Exclusion (Section 2 Item F. Pollution) in the ISO form contains 1 ¼ pages of exclusionary language for any pollution loss.  If your policy is endorsed with the Total Pollution Exclusion (CG 21 98 12 07), then even Products pollution is excluded.

GET YOUR FREE ENVIRONMENTAL RISK ANALYSIS HERE

Nominal Commercial Property Insurance. Pollutant Clean-up And Removal (Section A Coverages Part. 4. Additional Coverages of the ISO form CP 00 10 10 12) offers pollution clean-up with a $10,000 sublimit and responds only to pollution from a covered cause of loss and only if reported within 180 days of the loss date. It excludes any testing or monitoring that is not necessary for the removal.

 

We Can help

Identify your client’s pollution risks and communicate them; and Offer options to reduce and insure them.

01

Environmental Risk Analysis

We offer a free Environmental Risk Analysis of your client’s operations.  Just complete our initial intake information and we will develop a survey of the environmental risks that your client may have.  The more information you give, the better the analysis.

02

ESG Risk Management Partners

ESG has development a network of environmental risk professionals that include environmental consultants and counsel to assist your client in identifying their risks and mitigating them.

03

Environmental insurance underwriting

We have authority to underwrite pollution legal liability insurance with affordable terms with an AM Best A XIV rated insurer.

Environmental Loss is as Frequent  as Property Loss,  but much more Severe

top 10 property and liability claims for small business

Most Common

  • Burglary & Theft (20%)
  • Water and Freezing Damage (15%)
  • Wind and Hail Damage 6 (15%)
  • Fire (10%)
  • Customer Slip and Fall (10%)
  • Customer Injury and Damage (Less than 5%)
  • Product Liability (Less than 5 percent)
  • Struck by Object (Less than 5 percent)
  • Reputational Harm (Less than 5 percent)
  • Vehicle Accident (Less than 5 percent)

Most Costly

  • Reputational Harm ($50,000)
  • Vehicle Accident 3 ($45,000)
  • Fire ($35,000)
  • Product Liability 4 ($35,000)
  • Customer Injury or Damage 5($30,000)
  • Wind and Hail Damage ($26,000)
  • Customer Slip and Fall ($20,000)
  • Water and Freezing Damage ($17,000)
  • Struck by Object ($10,000)
  • Burglary and Theft ($8,000)

    Source: Insurance Journal April 9, 2015

 

Pollution Loss

Leaking underground storage tank (UST)
UST leak that impacts groundwater
Average cost of cleanup at RCRA facilities nationwide
Average cost of cleanup at Superfund sites nationwide
Average cost of petroleum sites in WA State

Average Clean Up Cost

$130,000 (1)
$100,000 – $1,000,000 + (1)
$9,200,000 per facility (2)
$6,000,000 per operable unit (non-mega sites) (2)
$2,800,000 (2)

(1) USEPA
(2) Washington Department of Ecology Analysis of Cleanup Obligations and Costs for Hazardous Waste Management Facilities in Washington State—Final Report January 29, 2003