Tag: pollution insurance

  • Natural Disaster Seasons Are a Great Time to Talk Pollution Insurance

    Natural Disaster Seasons Are a Great Time to Talk Pollution Insurance

    2016 NATURAL CATASTROPHES:  Insured losses due to natural disasters in the United States in 2016 totaled $23.8 billion, according to Munich Re, more than the $16.1 billion total for 2015. Severe thunderstorms losses, at $14 billion, accounted for about 60 percent of the 2016 insured losses. Floods and flash floods accounted for $4.3 billion in insured losses in 2016, and tropical cyclones accounted for $3.5 billion in insured losses. Winter storms and cold waves caused $1 billion in insured losses in 2016. Wildfires, heat waves and drought produced $1 billion in insured losses in 2016. (source:  Insurance Information Institute)

    As ERMI has coached in the past, Natural Disaster Seasons (NDS, i.e. Flooding, Tornados, Forest Fires, Hurricanes…) is a great time to talk pollution.  Did you know most pollution policies do not exclude Acts of God.

    During NDS, national and local media are lighting up the airways / internet highway with all the pollution problems caused by a natural disasters.  You hear about storage tanks releasing their contents as debris crashes into them during flood season.  Pollutants spread out over miles from tornados or hurricanes.  Forest Fires engulfing communities and causing explosions that release pollutants in the air and the list goes on.

    Note:  Pollution losses tend to be a severity versus frequency issue.

    The Prospects you want to strategize with on the value pollution insurance adds to their business model during NDS are those that feel they do not have a pollution exposure.  For this example, let’s use real estate owners.  For sake of avoiding an argument, agree with the real estate owners they do not have a pollution exposure, but then ask, what if a natural disaster deposits pollutants on your real estate?  As we move into spring the thoughts of melting snow carrying contaminants to nearby waterways to be deposited downstream during flood season to unsuspecting real estate owners in one simple example.

    Note:  Under federal law, the real estate owner is ultimately responsible for the environmental condition of their property.

    It may not be until years later when the real estate owner goes to sell their property and an environmental site assessment unveils an environmental problem from pollutants deposited during NDS.  Whose responsible?

    Since every business is impacted by environmental exposures, it’s now part of “Best Practices” for businesses to have a financial assurance strategy in place to address their exposure to environmental liabilities caused by Natural Disasters.

    NDS and pollution insurance go together like April showers that bring May flowers.

    As your team member for all things environmental, let ERMI know how we can assist you to drive your sales during NDS.

  • Illegal Disposal of Waste

    Illegal Disposal of Waste

    environmental Strategist®, between the lines:  As we have reported in the past, illegal disposal of waste in the United States is some tens of billions of dollars a year industry.  Besides the obvious environmental damage caused by illegal disposal of waste, it also poses a huge environmental exposure upon innocent third parties for bodily injury, property damage and business income.

    Environmental liabilities also create huge reputational risk for guilty parties.  In the case of Princess Cruises, this is not the first time they have been penalized for illegal disposal of waste.  In today’s transparent society, I wonder how many people decided to take a cruise with a competitor of Princess Cruises because they do not want to support a company that puts profit before the safety of humans and our environment?

    eS Risk Management Strategy:  When a business tells you they do not have any environmental exposures, share with them how illegal disposal of waste in the United States is some tens of billions of dollars a year industry.  Find out what their financial assurance strategy is- should they be negatively impacted by illegally disposed of waste?  Depending upon the guilty party to correct the problem, is a wishful, not practical strategy.  Pollution insurance can protect insureds, if they are impacted by illegally disposed of waste on their property or migrating onto their property.

    Princess Cruise Lines to Pay $40 Million for Illegal Dumping:  Princess Cruise Lines to pay $40 million fine for illegal dumping

    O’Reilly Auto Parts to pay $9.86 million settlement for mishandling hazardous waste:  http://www.fresnobee.com/news/local/crime/article118773768.html

  • Illegal Disposal of Waste

    Illegal Disposal of Waste

    environmental Strategist®, between the lines:  As we have reported in the past, illegal disposal of waste in the United States is some tens of billions of dollars a year industry.  Besides the obvious environmental damage caused by illegal disposal of waste, it also poses a huge environmental exposure upon innocent third parties for bodily injury, property damage and business income.

    Environmental liabilities also create huge reputational risk for guilty parties.  In the case of Princess Cruises, this is not the first time they have been penalized for illegal disposal of waste.  In today’s transparent society, I wonder how many people decided to take a cruise with a competitor of Princess Cruises because they do not want to support a company that puts profit before the safety of humans and our environment?

    splendor20of20seas20pollution_zps0c8a78ce
    Photo credit: dailykos.com

    eS Risk Management Strategy:  When a business tells you they do not have any environmental exposures, share with them how illegal disposal of waste in the United States is some tens of billions of dollars a year industry.  Find out what their financial assurance strategy is- should they be negatively impacted by illegally disposed of waste?  Depending upon the guilty party to correct the problem, is a wishful, not practical strategy.  Pollution insurance can protect insureds, if they are impacted by illegally disposed of waste on their property or migrating onto their property.

     

    Princess Cruise Lines to Pay $40 Million for Illegal Dumping:  Princess Cruise Lines to pay $40 million fine for illegal dumping

    O’Reilly Auto Parts to pay $9.86 million settlement for mishandling hazardous waste:  http://www.fresnobee.com/news/local/crime/article118773768.html

  • AIG Will No Longer Be Offering Monoline Site Pollution Coverage – Must Read For Commercial Insurance Agents

    As your environmental team member it is our job to keep you posted on changes in the environmental market place.

    AIG Environmental announced a decision yesterday, January 27, 2016 that they are no longer writing standalone pollution legal liability (PLL) policies also referred to as site pollution coverage.  Our understanding at this time is AIG will honor renewals until roughly June 1st, 2016 at which time they will place their PLL business into a runoff.

    We work with over 30 environmental insurance markets and will be able to seamlessly move your AIG PLL accounts to other carriers.  Based upon our experience in writing PLL (site pollution) policies we should have no problem replacing your coverage with another competitive program from a different carrier.

    I want to stress that as we know today this only applies to mono-line PLL policies (site pollution) and does not pertain to its EAGLE (combined PLL/GL) product. AIG will continue to offer their Eagle product moving forward.

    We will keep you informed as we hear more. This is just another example why having a team member  who specializes in the environmental marketplace is essential to your success.

  • Matson settles Hawaii’s claims over molasses spill for $15M

    What is a pollutant?  environmental Strategist describes a pollutant as any material, substance or product which is introduced into an environment for other than its intended use or purpose. There are numerous examples of fresh water, milk, cheese, fruit juice, beer, etc… all being classified as pollutants, and insurance coverage for pollution incidents  being denied by the General Liability carriers due to total pollution exclusions.  As the article below points you can add Molasses to the list of pollutants.

    In today’s transparent business environment, successful businesses balance managing and transferring their environmental exposures to drive their growth and profits. Environmental Risk Managers (ERMI) has a cornucopia of educational resources to coach you and your client’s on managing and transferring their environmental exposures.

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    This Sept. 12, 2013 file photo shows various kinds of dead marine life on the dock fronting the La Mariana Sailing Club in Keehi Lagoon in Honolulu. A major shipping company will pay the state more than $15 million for a 2013 molasses spill in Honolulu Harbor, Hawaii’s attorney general said Wednesday, July 29, 2015. (AP Photo/Eugene Tanner, File)
    Jul. 29, 2015 10:15 PM EDT

    HONOLULU (AP) — A major shipping company has agreed to pay more than $15 million to compensate for a 2013 molasses spill in Honolulu Harbor, Hawaii’s attorney general said Wednesday.

    Attorney General Doug Chin called the settlement with Hawaii-based Matson Navigation Co. one of the largest for an environmental violation in Hawaii’s history. The settlement includes a combination of cash, restoration efforts and funding for environmental programs, he said.

    Matson is also agreeing to cease its molasses operation in Hawaii and pay for removal of its molasses tanks and any remaining molasses, Chin said.

    The company will pay $5.9 million to the state, and the costs related to ending the molasses operation are estimated between $5.5 million and $9.5 million, which would put the total settlement amount between $11.4 million and $15.4 million, Matson Inc. said in a statement.

    “The range Matson provides in its press statement appears to reflect a desire to report a smaller loss to its investors for its next earnings report,” Chin said in response. “I have received assurances and the evidence strongly indicates that it will in fact cost $9.5 million for Matson to terminate its molasses operations in Hawaii. The state will make sure that Matson spares no costs and cuts no corners.”

    The 1,400 tons of molasses that spilled into the harbor in 2013 killed more than 26,000 fish and other marine life. Enough molasses to fill about seven rail cars oozed out from a section of pipe Matson thought had been sealed, suffocating marine life and discoloring the water as the sticky substance sunk to the bottom of the harbor.

    The spill, in an industrial area about 5 miles west of Waikiki’s hotels and beaches, shut down much of Honolulu Harbor for nearly two weeks.

    Reaching a settlement allowed the state to avoid a lawsuit that would have taken eight to 10 years to resolve in court, Chin said.

    The $5.9 million paid to Hawaii includes money to re-grow a coral nursery to help replace coral that had been damaged or destroyed. It will also reimburse the state for cleanup efforts and other costs, including nearly $2 million in legal fees. There will also be a contribution to the International Union for Conservation of Nature’s World Conservation Congress, which is being hosted by Hawaii next year.

    Matson executives said previously that they were not prepared for the possibility of a spill, despite transporting molasses from the pipeline for about 30 years.

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    In this Monday, Sept. 16, 2013 photo, a Maston ship sits in Honolulu Harbor near the site of a molasses spill. A major shipping company will pay the state more than $15 million for a 2013 molasses spill in Honolulu Harbor, Hawaii’s attorney general said Wednesday, July 29, 2015. (AP Photo/Oskar Garcia)

    Earlier this year, Matson Terminals Inc. pleaded guilty to federal criminal charges for illegally releasing the molasses into the harbor without a permit on Sept. 9 and 10, 2013. As part of a plea deal, Matson agreed to pay fines and restitution totaling $1 million, including $600,000 that went to the Waikiki Aquarium and Sustainable Coastlines Hawaii.

    Matson is the biggest company that ships goods to Hawaii from the mainland.

    “Matson has been a member of the community for more than a hundred years, and the company’s leadership understands the damage the molasses leak caused,” Gov. David Ige said in a statement. “The resolution allows reparations to occur now and helps see to it that such an environmental disaster does not happen again in Hawaii.”

    Now that there’s a settlement with Hawaii, the company doesn’t face any other pending claims, said Matson spokesman Jeff Hull.

    “Environmental stewardship is a core value in our company, so this event was a blow to all of us at Matson,” President and CEO Matt Cox said in a statement. “We can’t take back what happened, but we’ve done our best to make it right.”

    Matson shares climbed 51 cents, or 1.3 percent, to close Wednesday at $40.07, and they were up 1 cent in after-hours trading.