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THE UNCERTAINTY OF ENVIRONMENTAL RISKS IN A MORE ENVIRONMENTALLY SENSITIVE WORLD
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Transcript of THE UNCERTAINTY OF ENVIRONMENTAL RISKS IN A MORE ENVIRONMENTALLY SENSITIVE WORLD
THE UNCERTAINTY OF ENVIRONMENTAL RISKS
IN A MORE ENVIRONMENTALLY SENSITIVE WORLD
Agenda Environmental Sensitivities & Current Regulatory Climate
Exposures and Considerations
“War Stories”/New Contaminants
Environmental Insurance, Coverage & Enhancements
Open Discussion & Questions
Anthony Wagar Mike Giese
Willis Environmental Practice Chartis Environmental
212.915.7768 212.458.6244
Environmental Sensitivity & Current Regulatory Climate Deepwater Horizon Oil Blowout in the Gulf of Mexico, Toxic
sludge in Hungary and natural disasters in Japan.
Rising environmental protection initiatives, more stringent regulations, increasing enforcement and our clients growth and strategic expansion into new countries.
Environmental hazards are estimated to be present at 20-50% of all industrial real estate properties.
Exposures & Considerations
Environmental Risks Can:■ Create direct liability■ Result in costly litigation, negatively impact the bottom line
and distort revenue projections■ Cause project delays
What Role Can Insurance Play?■ Transfer Risk■ Manage financial downside due to environmental issues
Exposures & Considerations Considerations Pre-existing Site Conditions
(Unknown Historical/Legacy Issues) Operational Risk/“New” Conditions Legal Defense, Third-Party Bodily Injury
Property Damages and Cleanup Costs
While not high in frequency, environmental claims can be severe. Increased public awareness about pollution conditions and resulting lawsuits for 3rd party property damage & bodily injury. Also, consider the litigation climate of the area where work is being performed
War Stories/New Contaminants Silt/Sedimentation/Turbidity Claims
“It’s just muddy water right?”
Vapor Intrusion “Is it me or does something smell in here?”
Mold/Legionella/IAQ “Just hit it with bleach!”
Green Building “It’s not easy being Green”
War Stories/New Contaminants
Asbestos“It’s not friable – it’s just loose”
Legal Defense“I didn’t do anything wrong… it’s costing me how much?”
Chinese Drywall“Why can’t you just use a good primer and paint over it?”
Env Damage/Cleanup“I have to clean up how much of it?”
Environmental Insurance, Coverage & Enhancements
Contractor’s Pollution Liability
Pollution Legal Liability
Things to Consider Subcontractor CPL
Limits – aggregate or per-project?
Coverages?
In force? Cost impact of individual policies to project Claim situation – which carrier pays? Project CPL – the upside
Eliminates erosion of GC CPL
Claims resolution
Know what coverage is there
Avoid the uninsured indemnity
Top 6 CPL Coverage Enhancements
Defense outside limits PLL coverage for owned sites
Offices Yards/warehouses Maintenance shops Financial assurance for UST’s
Occurrence mold coverage Blanket NODS No EFIS exclusions Broaden definition of pollution conditions
Legionella Mold EMF Low Level Nuclear
THANK YOU!
Open Discussion & Questions