|
|
Beacon Hill Associates, Inc. is a wholesale insurance broker and program administrator, specializing in the placement of environmental insurance and other specialty insurance coverages for agents nationwide.
Beacon Hill Blog
Posts Tagged ‘Environmental Insurance’
Thursday, February 18th, 2010
In today’s market, a few million dollars of coverage is often not enough to adequately insure a business. For many larger firms involved in complex projects, limits of ten to fifty million are becoming increasingly common. While many agents routinely build these types of programs for their clients’ regular casualty lines, they seldom have the experience to do so for environmental exposures. Although in principal these are similar exercises, there are real issues to be aware of when doing so for an environmental program.
No tower is stronger than its base, and this is true of environmental coverage as well. Far too frequently agents are struggling to fill out limits where the primary layer was constructed incorrectly. An example is when a carrier uses a Contractors Pollution Liability form to provide coverage for an insured’s product. While the policy can be modified to provide some degree of coverage, it is significantly better to simply go to a carrier with a Products Pollution Liability form and have them write the primary properly. This gives cleaner coverage on the primary and makes it easy for excess carriers to step up on a true follow form basis.
Another common issue is using a Site Specific form to cover an insured’s job site. Again, this can work, but only with significant modification of the primary policy. As in the first example, this approach puts excess carriers on notice that something strange is going on, and makes them far less interested in writing the higher limits.
In addition to the structure of coverage, the quality of the carrier offering it is also important. The willingness of an excess carrier to sign on to a program is directly related to their comfort that the primary company will be there to honor their commitments. In today’s insurance market, an “A” Rated primary is crucial. “A” Rated with a size category of ten or better often leads to the best terms from excess carriers.
When the base is built properly, there are many carriers interested in writing higher limits. Again, experience has shown that agents often go with a slightly off primary from a smaller company because the price is much better. Many wholesale brokers would argue that if the base is built correctly, the excess actually becomes less expensive and easier to obtain. In the end, the program is better for the insured, and more cost effective as well—clearly the goal everyone is striving for.
  
Tags: Environmental Insurance, Environmental Insurance Advice, Multi-line
Posted in Articles | No Comments »
Wednesday, December 16th, 2009
As a wholesale broker in this competitive insurance market, we understand that you are probably always on the lookout for innovative new products and coverages that will make your insureds’ lives easier. One of the most common questions we hear from our agents is “how can I bring my contractor clients quality coverage at prices they can afford?” Never fear! Beacon Hill is happy to announce that we now have a Workers Comp product specifically geared toward Fire & Water Restoration and Asbestos Abatement Contractors. Coverage is offered by carriers rated ‘A’ or better and starts at just $750.
Now is the time to examine your book to see if you can move any of your Workers Comp accounts from assigned risk (or other state programs) into a program that will offer exceptional coverage at a very competitive rate. In addition, by securing this line, you can increase your control over these accounts and potentially bring in more revenue for your agency. Take advantage of this opportunity to reach out to your clients and make sure they have the best insurance program possible.
We must receive the following information in order to process your submission:
- ACORD 125 section
- ACORD Workers Comp section
- Current experience mod worksheet
- Three years of loss runs
- Description of the account and information on the company’s services.
PartnerOne Workers Compensation is available in the following states: AL, AR, CT, GA, IL, IN, KS, LA, MD, MO, MS, NC, OK, PA, SC, TN, and VA.
Call Beacon Hill Associates, Inc. today at 1-800-596-2156 for more information or to discuss a specific account. We look forward to working with you!
Tags: Contractors, Environmental Insurance, Workers Comp
Posted in Environmental Insurance | No Comments »
Monday, November 23rd, 2009
It is a misconception that the only people who have pollution exposures are those involved with hazardous substances. Unfortunately, this is not the case. In truth, anybody who works with, or can be held responsible for, the release of a substance into the environment that meets the definition of a “pollutant” in the ISO exclusion has a pollution exposure.
Trade Contractors are in a uniquely challenging position. While their responsibilities are often narrowly defined in the scope of services, they are usually one part of a multi-part process. This means that any claims that arise from a site may be brought against any or all of the contractors who performed operations at the location. And if the claim alleges something that is excluded by the contractor’s CGL policy, defense may not be provided.
Specific job site exposures that different types of trades have:
- Disturbing or exacerbating existing pollutants: Many contractors move earth, excavate, demolish, or otherwise alter existing features of a property. If any of those contain hazardous substances (petroleum contaminated soil, asbestos containing building materials, etc.), the contractor can be held responsible even though he was never advised that he would be.
- Contamination caused by materials the contractor brings to the site, such as paints, cleaning solvents, fuels, lubricants, etc.
- Contamination caused by operations, such as cutting through a gas line, installing flashing around window incorrectly, installing piping improperly, failing to solder joints, roofing leaks, erosion at site causing offsite contamination, etc.
- Contamination for which the contractor is held responsible, such as operations of a subcontractor to the trade contractor and actions of a party delivering materials to the site for the contractor.
- In addition to job site exposures, Trade Contractors also have exposures at the premises they own. This property, where they store their equipment and supplies, is often the single largest equity investment they have. Pollution at that location could reduce its value tremendously, effectively wiping out the equity built up by the owners.
- The final exposure area to note is Over the Road Pollution. This is the exposure that vehicles have going from owned premises to job sites. The upset and overturn of a vehicle can cause significant contamination, even if only from small amounts of fuels or solvents they use in their everyday work.
There are coverages available to address all of these exposures:
Contractors Pollution Liability
Designed to protect the Insured for claims stemming from pollution conditions at, on, or emanating from a job site arising where they are performing their operations.
Premises Pollution Liability
Coverage designed to protect against losses arising from the scheduled premises, which in this case would be the contractor’s owned properties.
Over the Road Pollution (Transportation Pollution Liability) is of course, coverage for pollution events during transit.
All of these coverages are available for most trade contractors, and they are all affordable. Many can be purchased together in packages, or separately depending on the needs of the particular Insured. For the trade contractor faced with many exposures that are effectively out of their control, consideration of this type of coverage is very important. In the current softening market, enhancing your clients’ coverage can be done for little additional premium and will help secure your relationship going into the future.
Tags: Contractors Pollution Liability, Environmental Insurance, Site Pollution, Transportation Pollution Liability
Posted in Environmental Insurance | No Comments »
Tuesday, November 10th, 2009
Do you insure contractors who have multiple jobsites and utilize mobile equipment? How is that equipment fueled? Does the insured haul each piece of equipment back to their own location to fuel or does the fuel go to the equipment? If the fuel is being brought to the equipment by the insured or by a third party acting on behalf of the insured, then the questions is: Does their Auto policy include broadened pollution coverage for property damage arising from a fuel spill when it is being transported as cargo? If the answer to that question is “No” then your insured has a pollution exposure and needs protection. When there are several hundreds of gallons of diesel fuel spilling out onto the highway and surrounding property, who do you think will be held responsible?
Transportation Pollution Liability (TPL) provides coverage for this gap in coverage. It is available both in conjunction with a Contractors Pollution Liability (CPL) policy and on a stand alone basis. This coverage applies to losses specifically caused by pollution conditions arising from transported cargo when the vehicle is being used in the performance of the insured’s operations.
If you would like to learn more about TPL coverage, feel free to contact us at 1-800-596-2156 or marketing@b-h-a.com.
Tags: Environmental Insurance, Transportation, Transportation Pollution Liability
Posted in Environmental Insurance | No Comments »
Thursday, October 1st, 2009
The EPA recently released a list of over 40 “high hazard potential” sites around the country that contain coal combustion residuals, commonly referred to as coal ash. This substance is a product of burning coal and is often stored in containment ponds or dams near electrical utilities. As coal ash leaches into the soil and spills into areas surrounding these facilities, there can be serious ramifications on human health and the environment. These storage ponds hold fly ash, bottom ash, coal slag, and flue gas residues that contain toxic metals such as mercury, arsenic, selenium, cadmium, and lead—all potentially toxic to people and wildlife.
Due to several recent coal ash spills, the EPA and other federal regulatory agencies are cracking down on the assessment, maintenance, and clean up of coal ash storage ponds in the U.S. These agencies will review the information provided by the facilities to identify issues that need priority attention, and will also visit many of these facilities to see if the management units are structurally sound. The top five states that are home to these “high hazard potential” sites include: North Carolina, Arizona, Kentucky, Ohio, and West Virginia.
Although the risks associated with hazardous coal ash sites can be devastating to the communities surrounding them, this is an opportunity for our government to take a more active role in making sure electrical (and other energy) utility sites are operating responsibly. This is also an opportunity for you to assist your clients—those who operate energy utilities as well as contractors who may be hired to clean them up—and make sure they have adequate environmental insurance. Take this opportunity to help your clients protect themselves from a potentially disastrous financial loss and secure the future of their businesses and workforces.
Contact Beacon Hill Associates, Inc. today for more information and applications.
Tags: Environmental Insurance, Pollutant, Site Pollution
Posted in Articles, Environmental Insurance | No Comments »
Wednesday, September 9th, 2009
Question: Why advise an insurance carrier of any incident or circumstance that may give rise to a claim, rather than wait until an actual claim is made?
Answer: It is important for an insured to remember that all potential incidents or circumstances that may develop into a claim should be reported to the insurer. Not only does diligent claim reporting protect the insured’s interests, it can also provide an opportunity to head off possible future litigation. Additionally, because most policies contain an exclusion for incidents or circumstances that were known by the insured, a claim made at a later date has the potential to be denied under this exclusion.
Many Claims Made policy forms require the insured to notify the carrier of any incidents, and several specifically address this issue with what is commonly known as “Circumstance Reporting” provisions. These provisions vary from carrier to carrier but generally require the insured to advise the carrier if anything has occurred. Any claim subsequently made against the insured because of the incident or circumstance would then be treated as a claim first made and reported to the insurer at the time the incident was originally reported. How carriers treat these reported circumstances varies: some lock in the incident date forever while others set a time limit for the reported incident to manifest into a full claim. Carriers may undertake an investigation of the incident immediately, if in their opinion there is a likelihood that the incident will become a full claim.
When placing Claims Made coverage for your insureds, it is important that circumstance reporting is adequately reviewed and addressed. At Beacon Hill Associates, we continue to review the forms we work with so that we can provide you with the coverage and enhancements you client needs to be adequately covered.
Tags: Claims, Environmental Insurance
Posted in Environmental Insurance, Environmental Insurance Advice | No Comments »
Thursday, August 20th, 2009
by Mike Tighe
Many insurance agents understand the importance of including environmental liability insurance in their clients’ insurance programs, and many have become successful at identifying the coverages needed by the classes of business they work with most often. In order for insureds to receive the most appropriate coverage for their operations, they must work closely with their agents to analyze what is, and isn’t, included in their policies.
We have assembled a list of the top 3 terms that can cause confusion in an environmental insurance policy. We have chosen these topics because they are ones that are often misunderstood or have a more narrow definition of coverage than the insured may require.
Transportation
The vehicle exclusion in some pollution forms is absolute. In addition to excluding over the road pollution claims, your policy may leave a gap should a job site pollution incident occur involving a vehicle or the loading/unloading of one.
Restoration Costs
Your pollution policy may clean up the damage to your insured’s property. It may also leave your insured with a large hole left for the insured to restore back to being a useful piece of property.
Natural Resources
While policies include third party property damage coverage and associated clean up, your client may incur non-covered expenses for natural resource damages for land held in trust by the government. The insured may be required to spend hundreds of thousands of dollars reintroducing fish, biota, birds, animals, and other wildlife back to the area.
These are just a few examples of why it’s so important to help your clients understand their policies! If you have questions about other environmental insurance terms, feel free to contact Beacon Hill or refer to our environmental insurance glossary.
Tags: Environmental Insurance, Natural Resources, Transportation
Posted in Environmental Insurance, Environmental Insurance Advice | No Comments »
|
|
