Tag: business

  • TEAMing with Attorney’s To Drive Insurance Sales

    Of all the “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s, environmental engineers) we are highlighting in the ERMI TEAMing with “Business Professionals” series, attorneys represent the lowest hanging fruit for insurance professionals to TEAM with.

    There are several reasons for this which we will cover in this competitive environmental intelligence but mainly, attorneys tend to specialize in specific areas of law, i.e. general business, estate planning, bankruptcy, patent / trademark, environmental, criminal, international, employee, civil…  This means an attorney is well versed in their specific area of law but possess very little knowledge about assisting their clients to manage and transfer their environmental exposures.  Note:  As highlighted in Series #1, TEAMing With “Business Professionals”, every business and individual is impacted by environmental exposures.

    Historically, once an environmentally reactive business / individual calls their attorney to assist them with an environmental liability, the attorney brings in their firm’s environmental specialist to address the issue.  This business model will generally lead to some form of litigation and what attorney’s clients have learned over the years about environmental litigation is its very time consuming, stresses resources and desired results are generally not achieved

    Insurance professionals are not going to fix a broken business model overnight, but you can fill a huge gap in most attorney’s work, lack of financial assurance to backstop their legal documents.  In today’s business environment, the name of the game for attorney’s is avoid litigation to grow their client base and business.  Insurance professionals are armed with an arsenal of products to assist attorneys to grow their business model.

    The bottom line, today’s transparent business environment has changed the way Attorney’s must address environmental exposures impacting their client’s which means opportunity for insurance professionals.

    Note:  Education is a vital component to building a TEAM relationship with “Business Professionals”.  Throughout the ERMI “Business Professionals” series we will offer coaching tips to assist you in building your relationships with “Business Professionals”.

    ERMI TEAM Relationship Coaching Tip:  In some contracts, attorney’s will require financial assurance to backstop indemnifications contained in the contract.  They will generally achieve this utilizing standard property and casualty and environmental insurances with coverage being evidenced by a certificate of insurance.  The problem this strategy presents in relation to environmental insurance is, an environmental insurance policy will not be issued without the insurance carrier first receiving a completed and signed “warranty” insurance application.  In general terms the application will state that the environmental insurance policy is being issued based upon the signed “warranty” application and that the application will become part of the policy.  The application goes on to say at the time of a loss if it’s discovered the application is not accurate, the insurance carrier can deny coverage.  Without first confirming the “warranty” application is accurately filled out the certificate of insurance may not be worth the paper it is written on and the same is true for the attorney’s financial assurances contained in the contract.  Coaching attorneys to understand warranty applications will fill a gap in their financial assurance strategy in contracts and a gigantic hole in their E&O exposure.

    To support the above statements let’s look at another example.  For years, attorneys have utilized environmental indemnifications in real estate Buy / Sell Agreements, mergers and acquisitions and many other legal instruments.  Generally speaking, attorneys feel content with addressing potential environmental exposures by simply utilizing environmental indemnifications in legal instruments and not backing them up with a financial assurance mechanism (i.e. bond, letter of credit, monies on deposit, insurance).

    Today we know the problems created by this mindset and the fact that environmental indemnifications are a very cursory way of addressing environmental exposures in legal transactions.

    ERMI TEAM Relationship Coaching Tip:  Environmental insurance policies pay for defense costs.  Do you think an attorney would rather collect their fees from a financially solvent insurance carrier or a client that just found out they have contaminated half their towns drinking water?

    For decades, our Federal Government has utilized financial assurance requirements for asbestos and lead abatement contractors, regulated underground storage tanks, hazardous & industrial waste haulers, Landfills…, so why not more attorney’s?

    Insurance professionals have a variety of financial assurance products to assist attorneys to reduce their E&O exposure, one of which is pollution liability insurance.  TEAMing with ERMI will allow you access to the full menu of the environmental insurance products offered by the major environmental insurance carriers.

    ERMI TEAM Coaching Tip:  Talking points with attorney’s.

    To understand why “Best Practices” for attorneys means moving beyond their current litigious business model to possessing a working knowledge of managing and transferring environmental exposures, we first must be on the same page about a few environmental facts.

    1. What is a “Pollutant”? If you look at an environmental indemnification in a contract, it generally describes a Pollutant as smoke, vapors, soot, fumes, acids…..  However, due to the way courts and insurance companies have responded to lawsuits and insurance claims, environmental Strategist™ (eS) has developed a definition that is easier to understand.  eS define a “Pollutant” as a material, substance or product that gets introduced to an environment for other than its intended use or purpose.” In other words, something that ends up where it does not belong can be a pollutant.  eS have examples where fresh water, milk, cheese, fruit, beer and more have all been defined as a “Pollutant”.
    2. Law firms generally utilize specially trained environmental attorney’s to address their client’s environmental exposures when in reality their biggest environmental exposures are with their other legal specialist’s i.e. general business, health, international, labor, estate planning, merger & acquisition, real estate…. In short, nearly every attorney must possess a working knowledge of proactively addressing their client’s environmental exposures.  TEAMing with ERMI insurance professionals can do this.  In short, you become the law firms backroom environmental risk manager on managing and transferring their client’s environmental exposures.
    3. Historically, attorneys have made their money by addressing past environmental problems such as asbestos, lead, mold and so much more. This reactive approach has cost attorneys time, resources, client relationships and much more.  TEAMing with ERMI we can coach attorney’s on proactively managing and transferring their client’s environmental exposures to increase productivity and profits while reducing their E&O exposure.
    4. The inability of at fault parties to meet environmental indemnifications in contracts is a reputational and liability risk for attorney’s. Attorneys not practicing environmental “Best Practices” may find their E&O insurance at risk of claims from disgruntled client’s.

    ERMI TEAM Coaching Tip:  You would be amazed how many contracts Environmental Risk Managers (ERMI) reviews that an attorney constructed requiring the wrong pollution insurance.  On almost a weekly basis ERMI will assist an attorney with correcting their contract to make sure the proper pollution insurance is being requested and put into place.  TEAMing with ERMI we can make sure your legal TEAM members are not opening themselves up to an E&O exposure by requesting the improper environmental insurance.

    Today’s business environment is demanding attorneys know if their work is preserving an asset or creating an environmental liability for their client and themselves.  Insurance professionals TEAMing with attorney’s to manage and transfer the attorney’s clients environmental exposures will position themselves as a trusted advisor and strategic partner while driving the sales of their insurance products.

    In Environmental Risk Managers “Business Professionals” Series #3 we will strategize on TEAM building with Bankers / Financial Institutions.

  • TEAMing with Attorney’s To Drive Insurance Sales

    Of all the “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s, environmental engineers) we are highlighting in the ERMI TEAMing with “Business Professionals” series, attorneys represent the lowest hanging fruit for insurance professionals to TEAM with.

    There are several reasons for this which we will cover in this competitive environmental intelligence but mainly, attorneys tend to specialize in specific areas of law, i.e. general business, estate planning, bankruptcy, patent / trademark, environmental, criminal, international, employee, civil…  This means an attorney is well versed in their specific area of law but possess very little knowledge about assisting their clients to manage and transfer their environmental exposures.  Note:  As highlighted in Series #1, TEAMing With “Business Professionals”, every business and individual is impacted by environmental exposures.

    Historically, once an environmentally reactive business / individual calls their attorney to assist them with an environmental liability, the attorney brings in their firm’s environmental specialist to address the issue.  This business model will generally lead to some form of litigation and what attorney’s clients have learned over the years about environmental litigation is its very time consuming, stresses resources and desired results are generally not achieved

    Insurance professionals are not going to fix a broken business model overnight, but you can fill a huge gap in most attorney’s work, lack of financial assurance to backstop their legal documents.  In today’s business environment, the name of the game for attorney’s is avoid litigation to grow their client base and business.  Insurance professionals are armed with an arsenal of products to assist attorneys to grow their business model.

    The bottom line, today’s transparent business environment has changed the way Attorney’s must address environmental exposures impacting their client’s which means opportunity for insurance professionals.

    Note:  Education is a vital component to building a TEAM relationship with “Business Professionals”.  Throughout the ERMI “Business Professionals” series we will offer coaching tips to assist you in building your relationships with “Business Professionals”.

    ERMI TEAM Relationship Coaching Tip:  In some contracts, attorney’s will require financial assurance to backstop indemnifications contained in the contract.  They will generally achieve this utilizing standard property and casualty and environmental insurances with coverage being evidenced by a certificate of insurance.  The problem this strategy presents in relation to environmental insurance is, an environmental insurance policy will not be issued without the insurance carrier first receiving a completed and signed “warranty” insurance application.  In general terms the application will state that the environmental insurance policy is being issued based upon the signed “warranty” application and that the application will become part of the policy.  The application goes on to say at the time of a loss if it’s discovered the application is not accurate, the insurance carrier can deny coverage.  Without first confirming the “warranty” application is accurately filled out the certificate of insurance may not be worth the paper it is written on and the same is true for the attorney’s financial assurances contained in the contract.  Coaching attorneys to understand warranty applications will fill a gap in their financial assurance strategy in contracts and a gigantic hole in their E&O exposure.

    To support the above statements let’s look at another example.  For years, attorneys have utilized environmental indemnifications in real estate Buy / Sell Agreements, mergers and acquisitions and many other legal instruments.  Generally speaking, attorneys feel content with addressing potential environmental exposures by simply utilizing environmental indemnifications in legal instruments and not backing them up with a financial assurance mechanism (i.e. bond, letter of credit, monies on deposit, insurance).

    Today we know the problems created by this mindset and the fact that environmental indemnifications are a very cursory way of addressing environmental exposures in legal transactions.

    ERMI TEAM Relationship Coaching Tip:  Environmental insurance policies pay for defense costs.  Do you think an attorney would rather collect their fees from a financially solvent insurance carrier or a client that just found out they have contaminated half their towns drinking water?

    For decades, our Federal Government has utilized financial assurance requirements for asbestos and lead abatement contractors, regulated underground storage tanks, hazardous & industrial waste haulers, Landfills…, so why not more attorney’s?

    Insurance professionals have a variety of financial assurance products to assist attorneys to reduce their E&O exposure, one of which is pollution liability insurance.  TEAMing with ERMI will allow you access to the full menu of the environmental insurance products offered by the major environmental insurance carriers.

    ERMI TEAM Coaching Tip:  Talking points with attorney’s.

    To understand why “Best Practices” for attorneys means moving beyond their current litigious business model to possessing a working knowledge of managing and transferring environmental exposures, we first must be on the same page about a few environmental facts.

    1. What is a “Pollutant”? If you look at an environmental indemnification in a contract, it generally describes a Pollutant as smoke, vapors, soot, fumes, acids…..  However, due to the way courts and insurance companies have responded to lawsuits and insurance claims, environmental Strategist™ (eS) has developed a definition that is easier to understand.  eS define a “Pollutant” as a material, substance or product that gets introduced to an environment for other than its intended use or purpose.” In other words, something that ends up where it does not belong can be a pollutant.  eS have examples where fresh water, milk, cheese, fruit, beer and more have all been defined as a “Pollutant”.
    2. Law firms generally utilize specially trained environmental attorney’s to address their client’s environmental exposures when in reality their biggest environmental exposures are with their other legal specialist’s i.e. general business, health, international, labor, estate planning, merger & acquisition, real estate…. In short, nearly every attorney must possess a working knowledge of proactively addressing their client’s environmental exposures.  TEAMing with ERMI insurance professionals can do this.  In short, you become the law firms backroom environmental risk manager on managing and transferring their client’s environmental exposures.
    3. Historically, attorneys have made their money by addressing past environmental problems such as asbestos, lead, mold and so much more. This reactive approach has cost attorneys time, resources, client relationships and much more.  TEAMing with ERMI we can coach attorney’s on proactively managing and transferring their client’s environmental exposures to increase productivity and profits while reducing their E&O exposure.
    4. The inability of at fault parties to meet environmental indemnifications in contracts is a reputational and liability risk for attorney’s. Attorneys not practicing environmental “Best Practices” may find their E&O insurance at risk of claims from disgruntled client’s.

    ERMI TEAM Coaching Tip:  You would be amazed how many contracts Environmental Risk Managers (ERMI) reviews that an attorney constructed requiring the wrong pollution insurance.  On almost a weekly basis ERMI will assist an attorney with correcting their contract to make sure the proper pollution insurance is being requested and put into place.  TEAMing with ERMI we can make sure your legal TEAM members are not opening themselves up to an E&O exposure by requesting the improper environmental insurance.

    Today’s business environment is demanding attorneys know if their work is preserving an asset or creating an environmental liability for their client and themselves.  Insurance professionals TEAMing with attorney’s to manage and transfer the attorney’s clients environmental exposures will position themselves as a trusted advisor and strategic partner while driving the sales of their insurance products.

    In Environmental Risk Managers “Business Professionals” Series #3 we will strategize on TEAM building with Bankers / Financial Institutions.

  • Environmental Risk Managers “Business Professionals” Series #2, TEAMing with Attorney’s To Drive Insurance Sales

    Of all the “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s, environmental engineers) we are highlighting in the ERMI TEAMing with “Business Professionals” series, attorneys represent the lowest hanging fruit for insurance professionals to TEAM with.

    There are several reasons for this which we will cover in this competitive environmental intelligence but mainly, attorneys tend to specialize in specific areas of law, i.e. general business, estate planning, bankruptcy, patent / trademark, environmental, criminal, international, employee, civil…  This means an attorney is well versed in their specific area of law but possess very little knowledge about assisting their clients to manage and transfer their environmental exposures.  Note:  As highlighted in Series #1, TEAMing With “Business Professionals”, every business and individual is impacted by environmental exposures.

    Historically, once an environmentally reactive business / individual calls their attorney to assist them with an environmental liability, the attorney brings in their firm’s environmental specialist to address the issue.  This business model will generally lead to some form of litigation and what attorney’s clients have learned over the years about environmental litigation is its very time consuming, stresses resources and desired results are generally not achieved

    Insurance professionals are not going to fix a broken business model overnight, but you can fill a huge gap in most attorney’s work, lack of financial assurance to backstop their legal documents.  In today’s business environment, the name of the game for attorney’s is avoid litigation to grow their client base and business.  Insurance professionals are armed with an arsenal of products to assist attorneys to grow their business model.

    The bottom line, today’s transparent business environment has changed the way Attorney’s must address environmental exposures impacting their client’s which means opportunity for insurance professionals.

    Note:  Education is a vital component to building a TEAM relationship with “Business Professionals”.  Throughout the ERMI “Business Professionals” series we will offer coaching tips to assist you in building your relationships with “Business Professionals”.

    ERMI TEAM Relationship Coaching Tip:  In some contracts, attorney’s will require financial assurance to backstop indemnifications contained in the contract.  They will generally achieve this utilizing standard property and casualty and environmental insurances with coverage being evidenced by a certificate of insurance.  The problem this strategy presents in relation to environmental insurance is, an environmental insurance policy will not be issued without the insurance carrier first receiving a completed and signed “warranty” insurance application.  In general terms the application will state that the environmental insurance policy is being issued based upon the signed “warranty” application and that the application will become part of the policy.  The application goes on to say at the time of a loss if it’s discovered the application is not accurate, the insurance carrier can deny coverage.  Without first confirming the “warranty” application is accurately filled out the certificate of insurance may not be worth the paper it is written on and the same is true for the attorney’s financial assurances contained in the contract.  Coaching attorneys to understand warranty applications will fill a gap in their financial assurance strategy in contracts and a gigantic hole in their E&O exposure.

    To support the above statements let’s look at another example.  For years, attorneys have utilized environmental indemnifications in real estate Buy / Sell Agreements, mergers and acquisitions and many other legal instruments.  Generally speaking, attorneys feel content with addressing potential environmental exposures by simply utilizing environmental indemnifications in legal instruments and not backing them up with a financial assurance mechanism (i.e. bond, letter of credit, monies on deposit, insurance).

    Today we know the problems created by this mindset and the fact that environmental indemnifications are a very cursory way of addressing environmental exposures in legal transactions.

    ERMI TEAM Relationship Coaching Tip:  Environmental insurance policies pay for defense costs.  Do you think an attorney would rather collect their fees from a financially solvent insurance carrier or a client that just found out they have contaminated half their towns drinking water?

    For decades, our Federal Government has utilized financial assurance requirements for asbestos and lead abatement contractors, regulated underground storage tanks, hazardous & industrial waste haulers, Landfills…, so why not more attorney’s?

    Insurance professionals have a variety of financial assurance products to assist attorneys to reduce their E&O exposure, one of which is pollution liability insurance.  TEAMing with ERMI will allow you access to the full menu of the environmental insurance products offered by the major environmental insurance carriers.

    ERMI TEAM Coaching Tip:  Talking points with attorney’s.

    To understand why “Best Practices” for attorneys means moving beyond their current litigious business model to possessing a working knowledge of managing and transferring environmental exposures, we first must be on the same page about a few environmental facts.

    1. What is a “Pollutant”? If you look at an environmental indemnification in a contract, it generally describes a Pollutant as smoke, vapors, soot, fumes, acids…..  However, due to the way courts and insurance companies have responded to lawsuits and insurance claims, environmental Strategist™ (eS) has developed a definition that is easier to understand.  eS define a “Pollutant” as a material, substance or product that gets introduced to an environment for other than its intended use or purpose.” In other words, something that ends up where it does not belong can be a pollutant.  eS have examples where fresh water, milk, cheese, fruit, beer and more have all been defined as a “Pollutant”.
    2. Law firms generally utilize specially trained environmental attorney’s to address their client’s environmental exposures when in reality their biggest environmental exposures are with their other legal specialist’s i.e. general business, health, international, labor, estate planning, merger & acquisition, real estate…. In short, nearly every attorney must possess a working knowledge of proactively addressing their client’s environmental exposures.  TEAMing with ERMI insurance professionals can do this.  In short, you become the law firms backroom environmental risk manager on managing and transferring their client’s environmental exposures.
    3. Historically, attorneys have made their money by addressing past environmental problems such as asbestos, lead, mold and so much more. This reactive approach has cost attorneys time, resources, client relationships and much more.  TEAMing with ERMI we can coach attorney’s on proactively managing and transferring their client’s environmental exposures to increase productivity and profits while reducing their E&O exposure.
    4. The inability of at fault parties to meet environmental indemnifications in contracts is a reputational and liability risk for attorney’s. Attorneys not practicing environmental “Best Practices” may find their E&O insurance at risk of claims from disgruntled client’s.

    ERMI TEAM Coaching Tip:  You would be amazed how many contracts Environmental Risk Managers (ERMI) reviews that an attorney constructed requiring the wrong pollution insurance.  On almost a weekly basis ERMI will assist an attorney with correcting their contract to make sure the proper pollution insurance is being requested and put into place.  TEAMing with ERMI we can make sure your legal TEAM members are not opening themselves up to an E&O exposure by requesting the improper environmental insurance.

    Today’s business environment is demanding attorneys know if their work is preserving an asset or creating an environmental liability for their client and themselves.  Insurance professionals TEAMing with attorney’s to manage and transfer the attorney’s clients environmental exposures will position themselves as a trusted advisor and strategic partner while driving the sales of their insurance products.

    In Environmental Risk Managers “Business Professionals” Series #3 we will strategize on TEAM building with Bankers / Financial Institutions.

  • Environmental Risk Managers “Business Professionals” Series #2, TEAMing with Attorney’s To Drive Insurance Sales

    Of all the “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s, environmental engineers) we are highlighting in the ERMI TEAMing with “Business Professionals” series, attorneys represent the lowest hanging fruit for insurance professionals to TEAM with.

    There are several reasons for this which we will cover in this competitive environmental intelligence but mainly, attorneys tend to specialize in specific areas of law, i.e. general business, estate planning, bankruptcy, patent / trademark, environmental, criminal, international, employee, civil…  This means an attorney is well versed in their specific area of law but possess very little knowledge about assisting their clients to manage and transfer their environmental exposures.  Note:  As highlighted in Series #1, TEAMing With “Business Professionals”, every business and individual is impacted by environmental exposures.

    Historically, once an environmentally reactive business / individual calls their attorney to assist them with an environmental liability, the attorney brings in their firm’s environmental specialist to address the issue.  This business model will generally lead to some form of litigation and what attorney’s clients have learned over the years about environmental litigation is its very time consuming, stresses resources and desired results are generally not achieved

    Insurance professionals are not going to fix a broken business model overnight, but you can fill a huge gap in most attorney’s work, lack of financial assurance to backstop their legal documents.  In today’s business environment, the name of the game for attorney’s is avoid litigation to grow their client base and business.  Insurance professionals are armed with an arsenal of products to assist attorneys to grow their business model.

    The bottom line, today’s transparent business environment has changed the way Attorney’s must address environmental exposures impacting their client’s which means opportunity for insurance professionals.

    Note:  Education is a vital component to building a TEAM relationship with “Business Professionals”.  Throughout the ERMI “Business Professionals” series we will offer coaching tips to assist you in building your relationships with “Business Professionals”.

    ERMI TEAM Relationship Coaching Tip:  In some contracts, attorney’s will require financial assurance to backstop indemnifications contained in the contract.  They will generally achieve this utilizing standard property and casualty and environmental insurances with coverage being evidenced by a certificate of insurance.  The problem this strategy presents in relation to environmental insurance is, an environmental insurance policy will not be issued without the insurance carrier first receiving a completed and signed “warranty” insurance application.  In general terms the application will state that the environmental insurance policy is being issued based upon the signed “warranty” application and that the application will become part of the policy.  The application goes on to say at the time of a loss if it’s discovered the application is not accurate, the insurance carrier can deny coverage.  Without first confirming the “warranty” application is accurately filled out the certificate of insurance may not be worth the paper it is written on and the same is true for the attorney’s financial assurances contained in the contract.  Coaching attorneys to understand warranty applications will fill a gap in their financial assurance strategy in contracts and a gigantic hole in their E&O exposure.

    To support the above statements let’s look at another example.  For years, attorneys have utilized environmental indemnifications in real estate Buy / Sell Agreements, mergers and acquisitions and many other legal instruments.  Generally speaking, attorneys feel content with addressing potential environmental exposures by simply utilizing environmental indemnifications in legal instruments and not backing them up with a financial assurance mechanism (i.e. bond, letter of credit, monies on deposit, insurance).

    Today we know the problems created by this mindset and the fact that environmental indemnifications are a very cursory way of addressing environmental exposures in legal transactions.

    ERMI TEAM Relationship Coaching Tip:  Environmental insurance policies pay for defense costs.  Do you think an attorney would rather collect their fees from a financially solvent insurance carrier or a client that just found out they have contaminated half their towns drinking water?

    For decades, our Federal Government has utilized financial assurance requirements for asbestos and lead abatement contractors, regulated underground storage tanks, hazardous & industrial waste haulers, Landfills…, so why not more attorney’s?

    Insurance professionals have a variety of financial assurance products to assist attorneys to reduce their E&O exposure, one of which is pollution liability insurance.  TEAMing with ERMI will allow you access to the full menu of the environmental insurance products offered by the major environmental insurance carriers.

    ERMI TEAM Coaching Tip:  Talking points with attorney’s.

    To understand why “Best Practices” for attorneys means moving beyond their current litigious business model to possessing a working knowledge of managing and transferring environmental exposures, we first must be on the same page about a few environmental facts.

    1. What is a “Pollutant”? If you look at an environmental indemnification in a contract, it generally describes a Pollutant as smoke, vapors, soot, fumes, acids…..  However, due to the way courts and insurance companies have responded to lawsuits and insurance claims, environmental Strategist™ (eS) has developed a definition that is easier to understand.  eS define a “Pollutant” as a material, substance or product that gets introduced to an environment for other than its intended use or purpose.” In other words, something that ends up where it does not belong can be a pollutant.  eS have examples where fresh water, milk, cheese, fruit, beer and more have all been defined as a “Pollutant”.
    2. Law firms generally utilize specially trained environmental attorney’s to address their client’s environmental exposures when in reality their biggest environmental exposures are with their other legal specialist’s i.e. general business, health, international, labor, estate planning, merger & acquisition, real estate…. In short, nearly every attorney must possess a working knowledge of proactively addressing their client’s environmental exposures.  TEAMing with ERMI insurance professionals can do this.  In short, you become the law firms backroom environmental risk manager on managing and transferring their client’s environmental exposures.
    3. Historically, attorneys have made their money by addressing past environmental problems such as asbestos, lead, mold and so much more. This reactive approach has cost attorneys time, resources, client relationships and much more.  TEAMing with ERMI we can coach attorney’s on proactively managing and transferring their client’s environmental exposures to increase productivity and profits while reducing their E&O exposure.
    4. The inability of at fault parties to meet environmental indemnifications in contracts is a reputational and liability risk for attorney’s. Attorneys not practicing environmental “Best Practices” may find their E&O insurance at risk of claims from disgruntled client’s.

    ERMI TEAM Coaching Tip:  You would be amazed how many contracts Environmental Risk Managers (ERMI) reviews that an attorney constructed requiring the wrong pollution insurance.  On almost a weekly basis ERMI will assist an attorney with correcting their contract to make sure the proper pollution insurance is being requested and put into place.  TEAMing with ERMI we can make sure your legal TEAM members are not opening themselves up to an E&O exposure by requesting the improper environmental insurance.

    Today’s business environment is demanding attorneys know if their work is preserving an asset or creating an environmental liability for their client and themselves.  Insurance professionals TEAMing with attorney’s to manage and transfer the attorney’s clients environmental exposures will position themselves as a trusted advisor and strategic partner while driving the sales of their insurance products.

    In Environmental Risk Managers “Business Professionals” Series #3 we will strategize on TEAM building with Bankers / Financial Institutions.

  • TEAMing With “Business Professionals” To Generate Insurance Sales

    To assist you to grow your insurance sales, environmental Strategist® has developed this competitive environmental intelligence series on executing a TEAM SPORT strategy. 

    After more than 25 years of operating a specialty environmental insurance wholesale operation, I have observed one common denominator successful insurance professionals share, they are continually looking for new opportunities.

    Since every business is impacted by environmental exposures and fewer than 15% of licensed insurance professionals are actively selling environmental insurance products there is huge upside for insurance professionals looking for opportunities.

    environmental Strategist® has developed this five-part educational resource specifically for you to coach up “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s) on the value you can add to their business model.   Through this process “business professionals” will bring you insurance sales opportunities to make sure they are better protecting their E&O exposure while executing environmental “Best Practices” with their client’s.

    As a simple example let’s look at attorney’s that draw up contracts for real estate buy / sell agreements.  It’s hard to find a buy sell agreement that does not contain an environmental indemnification.  However, if a financial assurance mechanism (letter of credit, monies in escrow, insurance, bond…) is not put into place to back stop the environmental indemnification and there is a default, the contract may not be worth the paper it is written on.  This can create and E&O exposure for the attorney since the attorney put the environmental indemnification in the contract, billed their client, but did not back stop it by making sure a financial assurance mechanism was in place to support their contract.  Attorney’s clients have been coming back to their attorneys for the financial solution since the indemnifying party defaulted on the “attorney’s” contract.

    In Series One of our five part series, we are going to review why “business professionals” will bring you sales opportunities utilizing a TEAM SPORT strategy.

    eS TEAM SPORT Strategy:

    Every insurance professional knows referral business is an excellent source for new business sales.  An insurance professional can either ask for referral business or they can produce referral business while assisting “business professionals” to leverage their business model.  A Win / Win strategy and much more professional than asking for referrals to generate new business.

    Producing referral business creates a higher success rate than asking, while at the same time positioning the insurance professional as a trusted advisor and strategic partner.

    Let me digress, the only constant we have is change (opportunity).  The environmental industry has created change (opportunity) in the way businesses operate.  This also creates change (opportunity) for the way business professionals leverage their products or services to proactively address environmental exposures impacting their client’s / prospects.  By following the environmental Strategist® (eS) www.estrategist.com holistic TEAM SPORT strategy you move beyond asking for referral business to “business professionals” asking you to assist them in helping their clients.

    Fortunately, the complexities of addressing environmental issues means there is no one stop shop to be able to get all your answers.  Therefore, the success a business professional has in addressing environmental exposures impacting their client’s, depends upon the TEAM that business professional surrounds themselves with.

    environmental Strategist has branded this a TEAM SPORT strategy.  TEAM SPORT stands for Together Everyone Accomplishes More because Strategic Partners Optimize Resources and Time.

    Who are your TEAM members?

    To answer that, let’s look at what a typical environmentally reactive business does when they find out they have an environmental problem.  Keep in mind, since the business is reactive they are managing the environmental problem after it occurs.

    Probably the first business professional an environmentally reactive business will call is their attorney.  After they call their attorney, they will contact their insurance agent to see if they have any environmental insurance coverage.  When their insurance agent informs them, they do not have any coverage, the reactive business generally will call their attorney back to sue the insurance agent’s E&O.

    Since the environmentally reactive business is unknowingly self-insuring their environmental liabilities, they will need financial resources to correct the problem and pay legal fees, cleanup cost, third party bodily injury, third party property damage…, so they need to involve their financial institution.  However, most financial institutions, once they find out they have a client with an environmental problem, their strategy is to call all obligations due and sever the relationship.

    Since the reactive business has an environmental liability, they need to involve their accountant to accurately express their current financial position.

    If the business owns, buys, sells or manages property they will want an environmentally knowledgeable realtor as part of their TEAM.

    You include the businesses environmental services providers  (environmental engineers, remediation contractors, waste haulers, etc.), and some of the businesses employees.  This rounds out your typical eMS TEAM.

    In Series Two we will review TEAM SPORT strategies for working with attorney’s to generate insurance sales.

    environmental Strategist (eS) business leverage strategy:  In achieving your environmental Strategist (eS) certification @ www.estrategist.com you position yourself as the TEAM leader the other TEAM members report to.  The www.estrategist.com Collaboration Portal is designed to position the eS as the TEAM leader.  Each time you develop a TEAM to assist a client to leverage their business model, other TEAM members will ask you for assistance in helping them with some of their client’s.  The eS producing referral business strategy is a win / win/ win / win for your clients, your TEAM members client’s, TEAM members and you. 

    www.estrategist.com educates business professionals how to leverage their business model by moving beyond asking for referral business.

  • More water problems hit Town of Jackson residents Friday

    environmental Strategist, between the lines:  Fact:  when businesses analyze their environmental exposures they generally focus on their exposure to clean up costs should a spill / release / exacerbation… of pollutants take place.  In reality, the cost to clean up a spill / release / exacerbation… of pollutants is far less than the claims / costs that come in from third parties for bodily injury, property damage and what I call the big black hole, business interruption.  You have to also factor in costs for defense, environmental investigations, claims management, public relations, natural resource damages….  Environmental insurance can cover the above environmental costs and more.

    So the real question a business has to answer when analyzing their environmental exposures is “does it make financial sense based upon our business model to transfer our environmental liabilities to a third party for fractions of a cent on the dollar or wait until an environmental liability occurs and pay 100 cents on the dollar out of our own pocket for clean up, third party bodily injury, property damage, business interruption, defense, environmental investigations, claims management, public relations, natural resource damages…”.

    Since every business is impacted by environmental exposures, every business must have a strategy to address their environmental exposures if they want to remain viable in today’s business environment.  environmental Strategist proprietary environmental Management Strategy (eMS) is designed to accomplish this goal and much more.  Contact us if you would like more information on development and execution of an eMS to drive growth and profits in today’s business environment.

    10/31/2014 – Milwaukee Journal Sentinel (WI)

    For Tom Willetts and his neighbors in the Town of Jackson, what he calls the next chapter in “the continuing saga” of a 2012 gasoline pipeline spill came Friday with the Halloween-style trick of no drinking water followed by a brownish flow.

    When he started his day early Friday, there was no water pressure, and no water in the line, Willetts said. Low pressure was restored a short time later but he wouldn’t drink or use what was coming out of his pipes, he said.

    “It looked pretty nasty,” Willetts said in describing the thick, brown water that flowed into his home Friday morning.

    Earlier this year, town residents living near the spill were offered connections to Village of Jackson water service as a substitute for contaminated wells or other private wells in a contamination advisory area.

    On July 17, 2012, a section of gasoline pipeline ruptured and spilled an estimated 54,600 gallons of gasoline in a farm pasture.

    West Shore Pipe Line Co. of Illinois, owner of the regional fuel distribution pipeline, is paying all costs of extending village water service to a large portion of the town. West Shore also is paying costs of building lateral lines needed to connect municipal mains to residences.

    The state Department of Natural Resources ordered 37 contaminated water wells to be abandoned.

    As of Tuesday, a total of 102 town residences had been connected to the municipal water system, Heidtke said.  Eight miles of water main have been installed to serve an area of the town on the west.

     

  • Gasoline gets into southeast Kentucky cave system

    environmental Strategist™, between the lines:  The majority of the time when you ask a business how they purchase their raw materials they will tell you they buy them FOB (Freight On board) point of shipment.  Why, because it’s cheaper.  The story below is a simple example of the dangers a business can experience buying their raw materials FOB point of shipment.

    Before you say it, let me, “This is a loss that could never Happen.”  Environmental liabilities for businesses generally are not a frequency problem but a severity problem.

    Gasoline gets into southeast Kentucky cave system – February 3, 2014 

    Kentucky Department of Environmental Protection crews are working with cavers after a fuel spill late last week.

    Early on the morning of January 30th 2014, a gasoline tanker truck left the pavement of US Highway 27 and rolled down an embankment just south of Burnside in southern Pulaski County.

    Due to a considerable delay between the time of the accident and when it was finally reported, most if not all 8,200 gallons of gasoline had already leaked out of the tanker by the time emergency personnel arrived on the scene.

    The fuel had flowed overland to a gully and several hundred feet over frozen ground to a swallow hole, believed to be connected to the Sloan’s Valley Cave system.

    Efforts to clean up the fuel remaining on the surface are underway, but the majority is thought to now be in the cave and groundwater.

    Although six cave entrances were checked and no fumes were detected, dangerous conditions inside the cave could exist inside. Several sumps exist along the base level stream passage and the gasoline is expected to be trapped on top of the water for a significant period of time.

    Fuel vapors may make self-contained breathing apparatus a necessity to enter the cave and there is also the potential for an explosion.

    Signs have been posted at the entrances warning of the potential hazardous conditions.

    In the future, before caving in Sloan’s or Neely’s Creek please obtain the latest information from the Kentucky Division of Water.

    [via Jared Snyder] & Gasoline gets into southeast Kentucky cave system [courier-journal.com]

     

    eS Risk Management Strategy:  environmental Strategist™ (eS) understand that sustainability is just another word for environmental risk management.  Through environmental risk management, eS offer four simple risk management strategies a business can implement to reduce their environmental liability exposures in receiving their raw materials.

    1.  Stop buying your raw materials FOB point of shipment, purchase them FOB point of delivery.

    2.  Working with your attorney team member, have then draw up a contract that transfers the transportation liability to the transporter until your raw materials are delivered and off loaded.

    3.  Only deal with transporters that carry transportation pollution liability coverage.

    4.  Businesses can purchase an insurance policy that protects them while third parties are transporting their goods.

    Business owner, what would you like to do?

    Through environmental risk management eS offer businesses options on managing and transferring their environmental exposures to increase profits in today’s business environment.  For more go to www.estrategist.com.

  • Chemical spill a blow to W.Va. capital’s economy

    environmental Strategist™, between the lines:  This environmental loss below is a very simple real life example of why environmental Strategist state that every business is impacted by environmental exposures.  While the company that caused the spill is probably toast, how are the impacted third party businesses going to be compensated for being forced to shut down?  What about defense cost, third party property damage, third party business income…?  What about employees not getting paid because their employer was forced to shut down?  This means bills are going to be paid late so other business are also going to be impacted.  And so on and so on…

    Environmental losses can cut deep and wide with those they impact.  Since every business is impacted by environmental exposures, common sense tells us businesses must have an environmental Management Strategy (eMS) that shows how to manage and transfer their environmental exposures.  Why has an eMS become part of “Best Practices” for business?  Because common sense tells us without our environment nothing else really matters because we’re toast.

    For more on developing and executing an eMS go to www.estrategist.com.

    Chemical spill a blow to W.Va. capital’s economy

    Brendan Farrington and Jonathan Mattise , AP Business Writers, 7:59 a.m. EST January 12, 2014

    CHARLESTON, W.Va. (AP) — On the third day without clean tap water, business owners with empty dining rooms and quiet aisles of merchandise around West Virginia’s capital were left to wonder how much of an economic hit they’ll take from a chemical spill.

    Most visitors have cleared out of Charleston while locals are either staying home or driving out of the area to find somewhere they can get a hot meal or take a hot shower. Orders not to use tap water for much other than flushing toilets mean that the spill is an emergency not just for the environment but also for local businesses.

    A water company executive said Saturday that it could be days before uncontaminated water is flowing again for about 300,000 people in nine West Virginia counties. The uncertainty means it’s impossible to estimate the economic impact of the spill yet, said the leader of the local chamber of commerce.

    Virtually every restaurant was dark Saturday, unable to use water to prepare food, wash dishes or clean employees’ hands. Meanwhile, hotels had emptied and foot traffic was down at many retail stores.

    “I haven’t been able to cook anything at home and was hoping they were open,” Bill Rogers, 52, said outside a closed Tudor’s Biscuit World in Marmet, just east of Charleston. “It seems like every place is closed. It’s frustrating. Really frustrating.”

    In downtown Charleston, the Capitol Street row of restaurants and bars were locked up. Amid them, The Consignment Shop was open, but business was miserable. The second-hand shop’s owner said she relies on customers who come downtown to eat and drink.

    “It’s like a ghost town,” Tammy Krepshaw said. “I feel really bad for all my neighbors. It’s sad.”

    The person she doesn’t feel bad for is Freedom Industries President Gary Southern, who told reporters the day before that he was having a long day and quickly wrapped up a news conference on the chemical spill so he could fly out of the area.

    “People want answers. They deserve answers,” Krepshaw said.

    The emergency began Thursday, when complaints came in to West Virginia American Water about a licorice-type odor in the tap water. The source: the chemical 4-methylcyclohexane methanol that leaked out of a 40,000 gallon tank at a Freedom Industries facility along the Elk River. State officials believe about 7,500 gallons leaked from the tank, some of which was contained before flowing into the river. It’s not clear exactly how much entered the water supply.

    Thirty-two people sought treatment at area hospitals for symptoms such as nausea. Of those, four people were admitted to the Charleston Area Medical Center but their conditions weren’t available Saturday.

    Federal authorities, including the U.S. Chemical Safety Board, opened an investigation into Thursday’s spill.

    By Saturday morning, FEMA said it had delivered about 50 truckloads of water, or a million liters, to West Virginia for distribution at sites including fire departments.

    There’s no question businesses have been hurt — particularly restaurants and hotels, said Matt Ballard, president of the Charleston Area Alliance, the state’s largest regional chamber of commerce.

    “I don’t know that it can be quantified at this point because we don’t know how long it will last,” Ballard said. “I’m hoping a solution by early next week so business can get back to normal.”

    While restaurants are having the most trouble, the effect ripples to other businesses, Ballard said. When people go out to dinner, they also shop. And restaurant workers who miss paychecks aren’t spending as much money.

    During the emergency, many people are just staying home, and some of those who aren’t are leaving the region and staying with family and friends who have a water supply. Ballard said that includes one of his employees who is staying in Ohio for the weekend.

    “It’s smart, but it certainly has a negative impact on what would be a normal business weekend,” Ballard said.

    The Alliance is urging businesses owners to check their insurance policies to see if they can make claims over lost business. It plans to hold workshops to assist businesses with those issues, Ballard said.

    In downtown, the store Taylor Books usually fills the 40 seats in its cafe. But the cafe was shut down by the state Department of Health on Friday because it said employees had no way to safely wash their hands before serving customers. On Saturday only three people sat in the bookstore using the wireless Internet. Manager Dan Carlisle said he canceled a musician scheduled to play that night and the store was going to close five hours early.

    “It’s pretty annoying,” Carlisle said about Freedom Industries’ response to the spill. “I feel like you should just be honest with people immediately.”

    Some bars have remained open, but they’ve seen a large drop in business. State officials were working Saturday on alternative sources of water that may allow restaurants to reopen.

    “We will work around the clock, 24-7, and try to open … as many businesses as possible in the next couple of days,” said Dr. Rahul Gupta, health officer for the Kanawha-Charleston and Putnam County boards of health.

    Several businesses that had arranged other sources of water were inspected Saturday. Gupta said health officials considered the closures’ impact on workers when they decided to allow businesses to reopen if they have potable water.

    “This is not only the businesses but also the folks that work in those businesses,” he said.