Manufacturers and Distributors have numerous exposures to potential pollution losses stemming from activities at their owned / leased premises, to the distribution / end use of their product, and their waste disposal. Creating a program for risk transfer is often complex for these operations due to the varying options available for coverage. Legends has extensive experience addressing these risks on both with packages and monoline coverage.

Examples of Manufacturing/Distribution classes written:

• Chemical Manufacturers & Distributors
• Valve & Tank Manufacturers
• Remediation Equipment Manufacturers & Distributors
• Herbicide & Pesticide Manufacturers & Distributors
• Textile & Furniture Manufacturers

Below are some of the environmental policies that can be written to address these exposures:

The coverage's most often written for Manufacturers / Distributors include:

Environmental Impairment Liability (EIL)

General Liability and EIL can be combined with shared or separate limits for many types of manufacturers. EIL coverage can be scheduled for any owned or leased location that may have materials onsite which if spilled could necessitate onsite cleanup, or cause third party bodily injury, and / or property damage claims. This coverage can be written as a standalone policy or in combination with General Liability and other pollution coverage, including Transportation Pollution, Products Pollution, Contractors Pollution, and Non-owned disposal sites (NODS).

Products Pollution

Product Pollution Liability can be added to a CGL package or written as a standalone coverage for manufacturers and distributors. Products pollution provides coverage for claim alleging bodily injury or property damage due to a pollution event caused by the insured’s product.

Transportation Pollution

Provides Pollution Liability while product is in-transit. This can be combined with Auto Liability coverage or written on a standalone basis covering first party transportation or third party (i.e. 3rd party carrier).

What is Environmental Impairment Liability? - Return

Common names for environmental impairment liability (EIL) are Pollution Legal Liability PLL, Premises Pollution Liability (PLL) or Site Pollution Impairment Liability (SPIL). These coverage's are designed to cover claims arising from pollution releases from any owned, leased, or managed site that is scheduled to the policy.

How does the coverage work?

• It is a structured policy. Policy can provide coverage for Onsite clean-up, Offsite clean up, and Third party liability protection
...for claims arising out of a pollution event occurring at insured’s premises. It can also be tailored to each clients particular
...needs and be less broad when the situation dictates.
• Three year policies are commonly quoted along with annual and provide significant cost savings. Five and ten year policy
...options also available
• Coverage can be applied to both above ground and underground storage tanks on premises
• Policies are typically triggered by a third party claim for damages, or if the policy contains a discovery clause above
..."actionable levels" on the insured's site.
• Coverage is almost always claims made
• Coverage can be written to only include new pollution conditions, or it can cover preexisting condition's.
• Coverage can include on specific site or a schedule of locations
• Can be written as a standalone policy or in combination with General Liability and other pollution coverage, including
...Transportation Pollution, Products Pollution, and Contractors Pollution.

Who buys it?

• Property Owners, Operators / Managers
• Landfills and Recycling Facilities
• Real Estate Investment Trusts
• Banks
• Purchasers and Sellers of properties
• Industrial and Manufacturing Facilities
• Auto Dealers / Maintenance Facilities
• Golf Courses
• Waste Water Treatment Facilities
• Apartment Complex's and Hotels for mold exposure
• Waste Water Treatment Facilities
• Educational Institutions, especially colleges – Chemical / Lab exposures, Mold
• Out of use Property, Vacant Land – Financial protection from diminution of value

Coverage Enhancements Available:

• Coverage for Transportation Pollution for both first and third party
• Coverage for Waste Stream Disposal and Non Owned Disposal Sites
• Natural Resource Damages
• Business Interruption Coverage
• Separate Defense Limits
• Can be packaged with Products Pollution
• For certain classes of business GL coverage can be combined.
• Lender Liability / Property Transfer policies are available for Banks

Cost & Limits Available

• Premiums start at $2,500 + tax and fee
• Limits are available from $500,000 up to $25,000,000

What is Products Pollution?
- Return

Products pollution is a product available to manufactures and distributors that works to protect the insured against a product failure that could cause a pollution condition. This coverage can be combined with General liability coverage or written as a separate coverage part.

• Coverage is can be written on a stand alone basis or in combination with Environmental General Liability package.
• Provides coverage for claim alleging bodily injury or property damage due to a pollution event caused by the insured’s product
• Provides an enhancement to General Liability coverage and protects the insured from a possible gap in coverage where the
...GL might exclude Bodily Injury / Property Damage arising from the discharge of pollutants from a product.
• Especially relevant for companies working within emerging industries where newly manufactured products may result in
...unforeseen losses.
• Coverage is available on an occurrence or claims made basis.

Who buys it?

• Biofuel manufacturers
• Marine products manufacturers – everything from oil & gas, valves, tanks, booms, dispersants
• Tank or pipe manufacturers or Fabricators
• Chemical Blenders or manufacturers
• Pesticide, Insecticide, herbicide manufacturers
• Bio medical manufacturers
• Products designed to carry, contain, move, and process pollutants such as: drums, tanks, pipes, valves, and air scrubbing
...systems

Coverage Enhancements Available:

• Pollution coverage for the insured's owned / leased premises
• Coverage for Transportation Pollution while the product is being shipped (for both first and third party)
• Coverage for Waste Stream Disposal and Non Owned Disposal Facilities
• Natural Resource Damages
• Vendors Additional insured coverage
• Blanket Waiver of Subrogation

Cost & Limits Available

• Premiums start at $10,000 + tax and fee
• Limits are available from $1,000,000 up to $50,000,000

What is Transportation Pollution Liability (TPL)? -
Return

Transportation Pollution Liability, also know as TPL or Motor Vehicle Pollution provides pollution liability for a vehicles cargo while it is in-transit. This coverage can be written for one vehicle or an entire fleet.

How does the coverage work?
• Provides an enhancement to Auto Liability coverage and protects the insured from a possible gap in coverage where the
...Auto Liability policy excludes Bodily Injury / Property Damage arising from the discharge of pollutants that they are
...carrying.
• Can be combined with a Contractors Pollution Policy.
• Coverage is available on an occurrence or claims made basis.
• Can be written for scheduled vehicles or an entire fleet.

Who buys it?

• Any Auto exposure hauling potential pollutants not subject to Federal or State filings
• Asphalt / Paving Contractors
• Any Contractor with a Fuel Truck
• Construction and Debris Haulers – Asbestos exposure
• Landscape, lawn care, herbicide, pesticide contractors
• Think, anything that if a wreck occurred and contents dumped into a river…would it have to be cleaned up?
...If the answer is maybe, there might be an exposure present not covered by auto policy

Coverage Enhancements Available:

• Natural Resource Damages
• Blanket Additional Insured for Ongoing and Completed Operations
• Blanket Waiver of Subrogation
• Separate Defense Limits
• Loading and Unloading at a job site.

Cost & Limits Available

• Premiums start at $2,500 + tax and fee
• Limits are available from $1,000,000 up to $25,000,000
Legends Environmental Insurance Services ~ 130 Vantis, Suite 250, Aliso Viejo, CA 92656 ~ Lic # 0c79875 ~ Phone: 800.992.6999
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