presentation to: washington state transit insurance pool about: pollution legal liability insurance...
TRANSCRIPT
PRESENTATION TO:
Washington State Transit Insurance Pool
ABOUT:
Pollution Legal Liability Insurance (PLL)
BY: Brian A. [email protected] ALLIANT INSURANCE SERVICES, INC.March 26, 2015
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Outline
Background of PLL
▫ The whys and wherefores…
WSTIP’s Coverage
▫ Summary of Terms and Conditions
Sample Claims
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PLL Background
Grew out of Absolute Pollution Exclusion (APE) on Commercial General Liability (CGL) policies in 1995.
Standalone coverage for pollution liability, various products:▫ Site Pollution / Environmental Impairment Liability (aka
Pollution Legal Liability)
▫ Contractors Pollution Liability
▫ Secured Creditor Programs
▫ Cost Cap / Remediation Stop Loss
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PLL Background
Coverage grants include:▫ Clean-Up / Remediation
▫ Bodily Injury (BI)
▫ Property Damage (PD)
▫ Related Legal Defense Expense
Other enhancements may include:▫ Business Interruption
▫ Transportation and Non-Owned Disposal Sites (NODs)
▫ Coverage for Fines & Penalties
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PLL Background
Policy Inception or Retro Date
Historical Condition
New Condition
Pollution Condition Occurs
Claims
Policy Term ERP
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PLL Background
Seepage Consideration
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WSTIP’s PLL Coverage
17 Members + WSTIP Headquarters:
Ben Franklin Transit Twin Transit
Link Transit Mason County Transportation Authority
Clallam Transit Pacific Transit
Grant Transit Authority Skagit Transit
Grays Harbor Transit Community Transit
Island Transit Spokane Transit
Intercity Transit Valley Transit
Jefferson Transit Whatcom Transit
Kitsap Transit
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WSTIP’s PLL Coverage
Effective 4/1/15 – 18
$5,000,000 Per Condition
$5,000,000 Aggregate
$100,000 Self Insured Retention
No Retro Date, except NODS coverage, and KT Transit AST at Foot Ferry Dock.
Premium: $127,463
XL Insurance
Marketed extensively: Liberty indicated $180,000
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Exclusions
Mold, Lead Based Paint, and Asbestos
Underground Storage Tanks
Communicable Diseases
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Exclusions
Non Disclosed Conditions▫Conditions that were reported to or known by a
“Responsible Insured” prior to inception date of the policy
▫Responsible Insured means – Officer, Director, or any employee of Insured responsible for the environmental or health and safety affairs of the Insured.
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Exclusions
Locations not on the Schedule▫We have built in automatic coverage upon
acquisition or lease of new locations subject to satisfying conditions:
• Will be bus terminal, maintenance, park and ride, or other facility in support of bus transportation
• Phase 1 Assessment within 1 year prior to acquisition with no Recognized Environmental Conditions.
• Reported to the carrier at end of year
• AP of $1,500 (pro-rated according to add date during 3 year policy term)
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Sample Claims
A fuel spill from bus fueling activities resulted in a 5,000 gallon release of diesel fuel from an AST when a line ruptured. The Insured had purchased a multi-year Pollution and Remediation Legal Liability Policy from XL Environmental. The Policy responded to the spill and remediation efforts which exceeded $225,000.
A bus/truck washing facility had a clarifier for the wash water. When they decided to replace the clarifier it was discovered that the soils surrounding it and beneath it were contaminated with petroleum hydrocarbons. 18 tons of contaminated soil had to be excavated and disposed of off-site. In addition, the petroleum hydrocarbons had reached the groundwater and impacted groundwater had migrated off-site to a neighboring property. Groundwater monitoring wells needed to be installed on and off site and pump and treat technologies will be employed to remediate the groundwater to acceptable levels.
A State Environmental Agency filed a Claim against a bus and truck maintenance facility operator, stating that the facility contributed to contamination of lake sediments from historical operations. Other responsible parties were named. Remediation and Claims expenses for the Insured are expected to exceed $1,000,000.
