Susan Neuman, President of EIA, has joined NAESIP, LLC, a wholesale environmental insurance broker headquartered in Mahwah, NJ as Brownfields Program Manager. See, the web site: www.NAESIP.com. She has also joined Mark Manewitz, one of the top environmental lawyers in New York and New Jersey to expand his environmental law practice to environmental insurance, in particular the use of policies to facilitate brownfields transactions.
Managing brownfields risks requires complex technical and legal analysis. Analyzing risks in renewable energy projects is equally complex. Both projects involve several contracts that must be integrated and made consistent with each other. Combining these types of projects creates a unique combination of risks, including, for sites where institutional/engineering controls are part of the remedy, risks that will not diminish over time. The best risk management tool is an insurance program that can integrate property and commercial general liability (CGL) coverage for renewable energy risks with manuscripted coverage under a site pollution liability (SPL) policy for brownfield risks. (Click here to download and read the full article)
After essentially disappearing from the environmental insurance marketplace for a number of years, cleanup cost cap products have made a re-appearance. Two carriers – AXIS and Beazley — have decided to offer the coverage, albeit with diametrically opposite approaches. The AXIS Remediation Management Policy is designed to provide liability protection to property owners, developers, and other “responsible parties.” It is not intended for contractors and consultants. In fact, in addition to conventional coverage for cost overruns related to remediation of known contaminants and of unknown contaminants discovered during the cleanup process, the policy includes coverage for “Protective Professional Indemnity.” In contrast to AXIS, Beazley’s Environmental Cleanup Cost Insurance policy is only available to certain contractors operating under a guaranteed fixed price remediation contract. Another difference is that the Beazley policy does not cover newly discovered contaminants, which would have to be covered by a companion site pollution liability policy.
Long-term stewardship liability is the risk that, post active remediation, institutional/engineering controls (IC/EC’s) at brownfield facilities will fail and thus create exposure pathways to hazardous substances left in place. Traditionally, this liability, which can last “in perpetuity,” has been excluded from site pollution liability policies. Over the last year, however, a number of environmental insurers have offered coverage for this liability under an endorsement drafted by Susan Neuman. The coverage is contingent on periodic monitoring/tracking of the IC/EC’s and annual certification by an approved engineering company.
Since April 22, 2010, EPA Rule 40 CFR Part 745 has required contractors performing renovation, repair and painting operations that could disturb lead-based paint in homes, child care facilities and schools built before 1978 to be trained and certified to follow specific work practices to prevent lead contamination. Although the EPA rule does not mandate insurance coverage, it subjects contractors to significant liability exposure. Contractors’ pollution liability coverage for this exposure is available for certified contractors with minimum premiums of $550 for claims made policies, $800 for occurrence based policies. Base limits are $250,000; higher limits are available.