Tollfree 800-596-2156 Fax 434-979-8964 email [email protected] Website www.b-h-a.com Mailing address: P.O. Box 1532 Charlottesville, Virginia 22902-1532 Physical address VA: 321 E. Main Street , Suite 300 Charlottesville, Virginia 22902 800-596-2156 Physical address GA: 8014 Cumming Highway Suite 403-276 Canton, GA 30115 800-381-2836 dba in California as Beacon Hill Insurance Services License # 0C84253 Following are a series of claim examples provided to us by our insurance companies. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer your client will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability. n Environmental Services Industry-Failure to Report Release-During remedial activities at a Superfund landfill site, a remedial action contractor (RAC) inadvertently crushed several drums that were improperly classified as “empty.” As a result, several gallons of hazardous contents were released, causing localized soil contamination. The RAC failed to notify the EPA of the release, which resulted in both criminal and civil actions against the contractor. The RAC was held liable under CERCLA, and was required to pay penalties exceeding $6.1 million. n Environmental Services Industry-Building Collapses-A remediation contractor excavated a small underground diesel tank near a distribution warehouse and noted that stained soil surrounded the tank. The project manager advised the firm to continue excavating around the tank, which pulled up the contaminated soil. Because of the foundation’s proximity to the distribution center, the excavation of contaminated material without proper shoring equipment caused the building’s wall to collapse. The distribution center’s walls and roof also collapsed. Reconstruction costs, business interruption, lost profits and additional remediation expenses totaled $1.2 million. n Environmental Services Industry-A family-operated gas station hired a UST contractor to remove two underground storage tanks and associated contaminated soil. During the course of storage tank removal, the contractor’s backhoe hit a natural gas pipeline causing an explosion. Third parties filed bodily injury claims against the contractor, as well as the owner whose building was destroyed in the explosion. Claims exceeded $2.5 million n Environmental Services Industry-Hazardous Air Emissions-An environmental firm was operating an incinerator to burn hazardous waste at a remote site. Due to cold, inclement weather at the project site, a makeshift tent was constructed to enclose the incinerator, on-site equipment and office space. When a power failure caused the incinerator’s air pollution control equipment to shut off, a plume of hazardous air emissions entered the tent. Personnel from various on-site subcontractors were subsequently overcome with fumes and required medical attention. Settlement costs amounted to $635,000. n Environmental Services Industry - An industrial cleaning contractor vacuumed contents of large storage tanks at a chemical plant. In the process of venting the tanks, the contractor inadvertently pumped toxic gas into the space. Several of the facility’s employees were overcome and died from the fumes. The contractors CGL policy declined the claim citing the pollution exclusion in the policy. Their CPL policy declined due to the Action Over exclusion. Claim Scenarios For CPL © Copyright 2007 Beacon Hill Associates, Inc. All Rights Reserved CS CPL V2

Claim Scenarios For CPL

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Tollfree 800-596-2156Fax 434-979-8964email [email protected] www.b-h-a.com

Mailing address: P.O. Box 1532 Charlottesville, Virginia 22902-1532

Physical address VA: 321 E. Main Street , Suite 300Charlottesville, Virginia 22902800-596-2156

Physical address GA: 8014 Cumming HighwaySuite 403-276Canton, GA 30115800-381-2836

dba in California as Beacon Hill Insurance ServicesLicense # 0C84253

Following are a series of claim examples provided to us by our insurance companies. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer your client will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability.

n Environmental Services Industry-Failure to Report Release-During remedial activities at a Superfund landfill site, a remedial action contractor (RAC) inadvertently crushed several drums that were improperly classified as “empty.” As a result, several gallons of hazardous contents were released, causing localized soil contamination. The RAC failed to notify the EPA of the release, which resulted in both criminal and civil actions against the contractor. The RAC was held liable under CERCLA, and was required to pay penalties exceeding $6.1 million.

n Environmental Services Industry-Building Collapses-A remediation contractor excavated a small underground diesel tank near a distribution warehouse and noted that stained soil surrounded the tank. The project manager advised the firm to continue excavating around the tank, which pulled up the contaminated soil. Because of the foundation’s proximity to the distribution center, the excavation of contaminated material without proper shoring equipment caused the building’s wall to collapse. The distribution center’s walls and roof also collapsed. Reconstruction costs, business interruption, lost profits and additional remediation expenses totaled $1.2 million.

n Environmental Services Industry-A family-operated gas station hired a UST contractor to remove two underground storage tanks and associated contaminated soil. During the course of storage tank removal, the contractor’s backhoe hit a natural gas pipeline causing an explosion. Third parties filed bodily injury claims against the contractor, as well as the owner whose building was destroyed in the explosion. Claims exceeded $2.5 million

n Environmental Services Industry-Hazardous Air Emissions-An environmental firm was operating an incinerator to burn hazardous waste at a remote site. Due to cold, inclement weather at the project site, a makeshift tent was constructed to enclose the incinerator, on-site equipment and office space. When a power failure caused the incinerator’s air pollution control equipment to shut off, a plume of hazardous air emissions entered the tent. Personnel from various on-site subcontractors were subsequently overcome with fumes and required medical attention. Settlement costs amounted to $635,000.

n Environmental Services Industry - An industrial cleaning contractor vacuumed contents of large storage tanks at a chemical plant. In the process of venting the tanks, the contractor inadvertently pumped toxic gas into the space. Several of the facility’s employees were overcome and died from the fumes. The contractors CGL policy declined the claim citing the pollution exclusion in the policy. Their CPL policy declined due to the Action Over exclusion.

Claim Scenarios For CPL