No two facilities face the same environmental exposures or have the same potential to cause pollution conditions. Thatís why the Industrial and Commercial Facilities business unit takes a creative approach to underwriting, tailoring an insurance product for each individual risk and providing comprehensive, cost-effective solutions to any business with an environmental exposure.

Our Most Versatile Product

The most versatile of our insurance products is our Pollution and Remediation Legal Liability (PARLL) policy. This policy provides third-party bodily injury and property damage coverage in addition to on-site remediation expenses for cleanup of pollution conditions at the covered location. Policy enhancements enable us to tailor coverage to meet the demands of a broad range of business and industry, including manufacturers, chemical distributors, real estate, educational facilities, dry cleaners and golf courses.

Apartment Building

A real estate manager of 30 residential apartment buildings needed a policy which responded to indoor air quality concerns, specifically carbon monoxide buildup, off-gases from carpeting and vapors from improper mixing of cleaning chemicals. We responded by tailoring a multi-year PARLL policy which responds to these unique environmental exposures.

Hospitals

In another case, a hospital management company was seeking coverage for fourteen hospital locations. We created a policy unique to the requirements of this risk, expanding the definition of "pollution condition" to include accidental contamination from medical wastes. We modified the policy to respond to accidental contamination from low-level radioactive wastes generated as a result of chemotherapy and other medical procedures. The policy also provides third-party on-site bodily injury coverage to limit each hospital's exposure to patient bodily injury claims arising from pollutants, such as sick building syndrome incidents.

Real Estate Transfers

Real estate transfer situations can be fairly complex, requiring experience and technical expertise to provide an insurance product which protects both parties. Due to the wide variety of properties which can be involved, these accounts are especially challenging. For the seller of a property, a PARLL policy can be modified to provide tail coverage for pollution events arising from past uses of the property up until the settlement date. For new property owners, the policy can be tailored to provide coverage for both prior and ongoing operations.

Chemical/Petroleum Distributors

XL Environmental also excels in providing pollution coverage for clients with acknowledged environmental exposures. Our Chemical/Petroleum Distributor program continues to expand, affording claims-made General Liability and Products coverage (including pollution) and automobile coverage, which includes the MCS-90 endorsement and full pollution coverage. For the customerís facility, PARLL coverage is available for sudden and gradual pollution conditions, as well as Property coverage. To complete the program, workersí compensation coverage can also be provided.

Why Your Coverage May Have Gaps

What is the importance of pollution legal liability insurance products and why is comprehensive coverage so important? The absolute pollution exclusion on most general liability and property policies has created a gap in traditional insurance coverage.

For example, a warehouse client recently sought pollution coverage because its general liability carrier declined a claim resulting from a halon release. In addition, a large restaurant chain is now pursuing pollution coverage with XL Environmental because their current carrier declined a claim resulting from a sewer backup caused by waste grease. In both instances, the carriers cited the absolute pollution exclusion when declining the claims.

Pollution liability claims for bodily injury and property damage can be extremely costly due to the potential for serious bodily injury from hazardous materials and significant investigation and remediation expenses involved with site cleanup. Legal fees for adjustment and defense of claims can also be costly. XL Environmental excels in bridging this gap with innovative solutions for a variety of businesses.

XL Environmental also provides a variety of risk management and loss control services through our subsidiary company, XL Environmental Risk Control. Their services include ongoing environmental training such as health and safety audits and indoor air quality studies.