At one time, many public buildings, offices, and school buildings used asbestos materials in their construction to resist or reduce the spread of fire. Those once-touted products have since been found to be extremely toxic. Asbestos abatement consultants determine if a property contains asbestos and suggests ways to best mitigate any asbestos exposures found. Their professional liability exposure arises from … Read More
Pollution caused by vessels, such as the Exxon Valdez incident in Prince William Sound in Alaska, can lead to extremely large losses. The vessel pollution coverage pays damages for leaks and spills of crude refined oil and other chemicals by ocean-going vessels that harm the environment. The United States Coast Guard (USCG) must approve any insurer that provides this coverage … Read More
The Environmental Protection Agency (EPA) requires owners and operators of hazardous waste treatment, storage, or disposal facilities to either purchase insurance or provide other proof of their ability to pay for third-party damages caused by both sudden and not sudden occurrences of accidental pollution. Hazardous waste insurance covers companies actively involved in generating, processing, transporting, or disposing of hazardous waste. … Read More
This coverage can be written on a stand-alone basis or it can fill a gap in a general liability policy that excludes lead paint or pollution. Property managers, owners, landlords, and any party that controls the property is eligible to purchase this coverage. Varying per-claim and aggregate limits are available.
Contractors that work on public projects are required to provide surety bonds. Carriers that specialize in insuring asbestos and/or lead abatement contractors have expanded into the field of surety bonds for these contractors because they understand their exposures. Specialized surety companies that concentrate on environmental bonds include:
Lead additives were eliminated from paint used in residential and commercial applications in 1978. Many buildings painted before that date still have lead exposures because paint that chips exposes previous layers of paint. Lead paint removal contractors remove the lead paint so that it no longer poses a problem.
Coverage is available for businesses that transport hazardous materials. The Motor Carrier Coverage Form is normally used to cover auto liability and physical damage. General liability coverage may be modified to offer some pollution coverage and the MCS-90 endorsement is available for hazardous materials carried under the Motor Carrier Act.
Hazardous industries tend to have severity issues as opposed to frequency issues. This makes them more difficult to underwrite profitably. Effective management and proactive loss prevention are the keys to successfully writing these risks. Examples of industries that fall into this category are logging, trucking, agribusiness, oil and gas, maritime, and many types of manufacturing and construction operations.