We have all heard the current news about the oil spill in the Gulf of Mexico and its devastating effects on the environment, wildlife, and the fishermen whose livelihoods depend on the now-contaminated waters. Thousands of people and companies have now been directly affected by this problem—the oil and gas companies, the contractors tasked with cleaning up the oil, contractors operating the robotic machinery being used to correct the problem, workers on drilling rigs, etc.
The “energy” category of insurance has a broad definition and these clients often require varying types of environmental liability coverage. Energy clients range from blending and mixing facilities, oil and gas servicing contractors, vacuum truck services, and refineries, to more alternative energy risks, such as biodiesel facilities and contractors handling windmills and solar-powered services and equipment. These classes of business all present unique challenges when identifying and securing the proper insurance. The insured and his/her agent need to work closely to make sure all operations have been addressed.
And, while some of these activities are regional, most companies operating in the energy industry span across the country. Here are some of the environmental liability coverages they often require:
General Liability/Contractors Pollution Liability
Combined General Liability and Contractors Pollution Liability policy that provides coverage for Pollution claims arising from an insured’s covered and completed operations.
Products Pollution
Products Pollution coverage provides liability coverage for Bodily Injury and Property Damage to third parties arising out of a manufactured product. Coverage can be provided by either a stand alone policy or by an endorsement to a CGL form and can be offered with either a Claims Made or Occurrence Trigger, depending on the market and type of product being insured. This would be especially important for blending/mixing facilities, companies that make solar panels, etc.
Transportation Pollution Liability
Transportation Pollution Liability, or TPL, is “over the road” pollution insurance. It covers insureds who need protection for pollution conditions caused by transportation. This coverage can also include loading/unloading should the insured’s cargo create a pollution condition. This would be important for haulers of any placard use, vacuum truck services, salt water disposal companies, etc.
Excess
Follow form Excess policies provide additional limits, following form over the underlying General Liability, Pollution, and any associated Professional, Employers, and Auto liability.
These lines of coverages typically start at reasonably low premiums and limits can be written up to $100,000,000. Additionally, many optional coverage enhancements may be offered. Now more than ever, affordable insurance is available for companies that need protection in the event of an environmental liability insurance claim.
Energy risks are always in a state of dynamic change, adapting to the needs of their clients and the insurance requirements placed upon them. Although environmental liability insurance is not always required, the Gulf of Mexico oil spill is the perfect example of why it is crucial for energy companies to have adequate coverage. Companies cannot afford to skimp on insurance when it means potentially costly consequences for the future of their businesses. This is a great opportunity for insurance agents to contact their energy clients to review their current policies and make sure the right insurance program is in place.
| About Author Bill Pritchard : |
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Bill Pritchard is the president of Beacon Hill Associates, a leading broker of environmental insurance policies such as contractors pollution liability, premises pollution liability, and other coverages. Beacon Hill Associates can be found online at: http://www.b-h-a.com .
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Article Source: http://www.bharatbhasha.net
Article Url: http://www.bharatbhasha.net/finance-and-business.php/340657
Article Added on Monday, January 30, 2012
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