SITE POLLUTION LIABILITY TOOLKIT II · 2019. 9. 19. · most innovative pollution liability products available on the market, we are pleased to announce the release of The Hartford’s

SITE POLLUTION LIABILITY TOOLKIT II

ENVIRONMENTAL DIVISIONCOVERAGE COMPARISON AND ENHANCEMENTS

Intelligent risk transfer of environmental liability exposures continues to be an increasingly important concern to real estate owners. With environmental exposures becoming more complex and highly regulated every year, many property owners and operators lack the necessary insurance protections that could satisfy their contractual requirements and ensure their business survives an unforeseen environmental incident arising out of their operations.

Our original Property Owner’s/Operator’s Environmental Risk Management ToolkitSM was launched in 2009 to provide very broad coverage with a number of unique features designed to meet the needs of our insureds. As environmental risks continue to evolve, we recognize the need for our policy to adapt to increased exposures for the benefit of our insureds.

To meet our commitment to provide the broadest and most innovative pollution liability products available on the market, we are pleased to announce the release of The Hartford’s Site Pollution Liability Toolkit II, our new industry-leading pollution liability policy for property owners. The following table illustrates the improved and broadened coverages included in our new policy form.

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COVERAGE PROPERTY OWNER’S/OPERATOR’S ENVIRONMENTAL RISK MANAGEMENT TOOLKITSM

SITE POLLUTION LIABILITY TOOLKIT II ENHANCEMENTS

Coverage A – Pollution Liability for Insured Sites

• No scheduling required for insured sites

• Third-party claims and first-party discovery trigger

• Built-in coverage A retroactive date for policy efficiency

Coverage B – Pollution Liability for Off Site Activities

• Single, broad, all-encompassing agreement for off-site activities, which includes contracting, transportation and waste disposal

• NO scheduling required

• First- and third-party carrier (properly licensed)

• Built-in coverage B retroactive date for policy efficiency

Non-Owned Locations/Waste Disposal Facilities

• Included in coverage B on broad unscheduled basis

• Excludes claims brought by a waste disposal facility owner/operator

• Waste disposal facilities can be scheduled by endorsement federal cleanup list, and not in bankruptcy

• Removes exclusion for claims brought by a waste disposal facility owner/operator

• Removes exclusion for waste disposal facilities in bankruptcy

• Consolidated waste disposal facilities into non-owned locations

Transportation • Included in coverage B on broad unscheduled basis

• No change in Site Pollution Liability Toolkit II

Environmental Crisis Management

• Coverage available by endorsement • Standard endorsement

Emergency Cleanup Costs

• Sudden pollution incident (starts and stops within 72 hours) and is discovered within 7 days and reported within 21 days

• Coverage B: emergency cleanup costs built into form – first-party trigger and no sublimit

• Included in all coverages

• Increased to 15 days discovery and 30-day reporting

• Removed sudden pollution incident requirement (starts and stops within 72 hours)

Defense Costs • Erodes the limit of liability (inside) • Moved to outside the limits of liability subject to separate defense limit

Supplementary Payments

• Not included • No change in Site Pollution Liability Toolkit II

Coverage Territory • United States, Puerto Rico and Canada • Expanded to worldwide, provided claims are brought back to the United States, Puerto Rico or Canada

Fungus and Legionnaire’s Disease

• Not included in base form • Included in definition of pollutants

• Separate deductible and retroactive dates can be established in declarations page, or on a site-specific basis via endorsement.

Electromagnetic Fields

• Not affirmatively included in the definition of pollution incident

• Included in definition of pollutants

Midnight Dumping • Not affirmatively included in the definition of pollution incident

• Expanded pollution incidents to include illicit abandonment

• Applicable to third-party job sites and insured sites

Silt or Sediment • Not affirmatively included in the definition of pollution incident

• Expanded pollution incidents definition to include silt or sediment

Cyber Incident • Not affirmatively included in the definition of pollution incident

• Expanded pollution incidents definition to include cyber incidents

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COVERAGE (continued)

PROPERTY OWNER’S/OPERATOR’S ENVIRONMENTAL RISK MANAGEMENT TOOLKITSM


Naturally Occurring Materials

• Excluded with giveback for when (1) presence of the substance is the result of your contracting operations or (2) when the amount or concentration of any substance discovered exceeds the amounts or concentrations naturally present in the environment as a result of man-made structures, human activities or your business activities

• Deleted exclusion and built into definition of pollution incident to include any pollution in excess of the amount or concentration naturally present in the environment

Cleanup Costs • Damages leading to cleanup costs pursuant to (1) environmental laws or (2) recommended by environmental professionals in the absence of environmental laws

• Expanded environmental professional to include licensed site remediation professional

Restoration Costs • Includes cost to repair, replace or restore property damaged in course of incurring cleanup costs

• Expanded restoration costs definition to include betterments entailing the use of materials meeting green standards

Bodily Injury • Includes physical injury, sickness, disease, illness, medical monitoring in presence of physical injuries, mental anguish, emotional distress or shock

• Expanded bodily injury definition to include building-related illness

• Expanded medical monitoring as required by court order

Property Damage • Includes physical injury or destruction of tangible property owned by third parties, including resulting loss of use and diminution in value

• Includes loss of use of tangible property owned by third party not physically injured or destroyed

• Includes natural resource damages


Asbestos, Lead and Silica

• Coverage A – asbestos or lead exclusion does not apply to bodily injury, property damage or cleanup of soil, groundwater and surface water

• Coverage B – no exclusions, including contracting operations

• Expanded giveback for cleanup of sediment

• Expanded giveback for cleanup costs that arise out of inadvertent disturbance

• Exclusion for lead-based paint expanded to include lead-containing materials

Contractual Liability • Excluded unless the liability would exist in absence of the contract or agreement

• Insured contracts required to be scheduled by endorsement


Fines and Penalties • Exclusion limited to criminal • No change in Site Pollution Liability Toolkit II

Insured versus Insured • Exclusion for claims made by an insured against any other insured

• Giveback for claims initiated by additional insured or that arise out of an indemnification given by one named insured to another named insured in an insured contract

Intentional Acts • Broad exclusion for intentional acts • Giveback to exclusion if responsible Insured’s actions were taken in good faith upon written advice of outside counsel in advance of such non-compliance

• Giveback to exclusion for emergency cleanup costs

Professional Services Exclusion

• Excluded • Giveback for means, methods, techniques, sequences and procedures in connection with contracting operations and in your capacity as a construction contractor

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COVERAGE (continued)

PROPERTY OWNER’S/OPERATOR’S ENVIRONMENTAL RISK MANAGEMENT TOOLKITSM


Separately Insured Projects

• Excluded separate project policies where the policy was written by us or another insurer

• Only applies to separate project policies written by us and issued to a named insured

Underground Storage Tanks

• Exclude known USTs that are not scheduled

• Exclusion does NOT apply to removed or abandoned tanks in place, provided the insured removed or abandoned in-place tanks in compliance with all applicable regulations

• Clarified USTs do NOT include septic tanks, sump pumps, water-oil separators, and storm-water or waste-water collection systems

War/Hostile Acts Exclusion

• Broad exclusion for war and hostile acts, including but not limited to strikes, riots or civil commotions

• Removed from the exclusion strikes, riot or civil commotion

Your Products Exclusion • Excluded with giveback during transportation or warehoused by others on your behalf

• Expanded giveback when your products are still possessed or controlled by you

Damage to Your Work Exclusion

• Excluded • Giveback for completed operations

Named Insureds • First named insured only • Added broad insured status for owned entities for coverage A

Additional Insureds • Not included in base form • Added additional insureds where required by contract

Notice of Cancellation • Provisions endorsed to policy

• 10-day notice for failure to pay premium

• 90-day notice for fraud or material misrepresentation or change in risk

• Narrowed cancellation clause for material increases in risk to apply only to specified risks

• Specific exclusions to be processed via endorsement to avoid full policy cancellation

Service of Suit • Any court of competent jurisdiction within the United States


Waiver of Subrogation • Not included in base form • Added waiver of subrogation to your clients where required by written contract

Claim Notification • As soon as practicable • No change in Site Pollution Liability Toolkit II

Extended Reporting Period

• 90-day automatic ERP

• Supplemental ERP (optional) up to two times the policy period with a maximum of 36 months

• Removed restriction of up to two times policy period

Auditable • Not auditable • No change in Site Pollution Liability Toolkit II

This document outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail. All coverages described in this document may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. Coverage may not be available in all states or to all businesses. Possession of these materials by a licensed insurance producer does not mean that such producer is an authorized agent of The Hartford. To ascertain such information, please contact your state Department of Insurance or The Hartford at 1-888-203-3823. All information and representations herein are as of September 2019.

In Texas and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Hartford Insurance Company of the Midwest, Navigators Insurance Company, Navigators Specialty Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Trumbull Insurance Company, Twin City Fire Insurance Company, Hartford Underwriters Insurance Company, Property and Casualty Insurance Company of Hartford and Sentinel Insurance Company, Ltd.

The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.

19-NI-78179 © September 2019 The Hartford

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SITE POLLUTION LIABILITY TOOLKIT II · 2019. 9. 19. · most innovative pollution liability products available on the market, we are pleased to announce the release of The Hartford’s