1. Environmental Liability 2018 Risk Trends

2. Emerging Contaminants
Perceived as a potential or real threat to human health and/or the environment; frequently lacking published health standards
Lead in Drinking Water
Toxic Fluorochemicals (PFAS, PFOA, PFOS)
Nanomaterials (NMs)
Pharmaceuticals/Personal Care Products – WWTS
Algal Blooms/Nutrient Pollution
Indoor Air Quality – Mold, Legionella, Virus
…in many cases, driven by the increasing ability to measure infinitesimal constituent concentrations and correlate with disease or property damage (including natural resource damages)

3. Environmental Risk Evaluation Considerations
Operational Exposures
Contractor Exposures
Professional Exposures
Real Estate Portfolios/Multi Unit Indoor Air Concerns
Development Exposures/Brownfield
Blending with CGL for value

4. Environmental Liability – Key Terms Deserving Emphasis
Pre (Existing) or New Pollution Condition (Retroactive Date)
Known Condition Exclusion
Insuring Agreement Triggers
Discovery, Legally Obligated, Third Party Claims,
Government Mandate
Named Insured, Additional Insured, Mortgagee Insured capacity

5. PLL Insurance Benefits…Transactions Environmental insurance should always be a pre-disposition/acquisition consideration
For Sellers:
Sever Balance Sheet liabilities
Take environmental conditions price negotiation “off the table”, preserve sale price
Help to sever balance sheet liabilities
Stands as Seller’s indemnification in a deal (add Buyer as Named Insured)
For Buyers:
Protection against destabilizing event from unknown environmental conditions – cleanup or third party claims
Satisfy lender, shareholder and directors requirements
Provide material indemnification for Sarbanes-Oxley compliance

6. Premises Pollution (PLL) Supporting Real Estate Transactions
Insurance for unexpected loss
Known Release: The HOUSE is on Fire. Cleanup Excess of Indemnity, Cost Cap (aka the “unicorn”), third party coverage (BI/PD) usually available
Suspected: Cleanup limitations such as no voluntary investigation, no discovery (third party trigger), government mandate trigger, capital improvement exclusion, soil management exclusion, institutional/engineering controls exclusion
Unknowns: Complete First and Third Party Coverage

7. Recent Environmental Insurance Placement and Claims Examples
What’s Hot (Placement Examples)
Trending Claims Examples
Questions?
Don Bryant, CHMM
Vice President, Environmental Risk Practice Leader
Mary Gerding, ARM
Vice President, Environmental Client Service Executive