Chubb Chubb Environmental Environmental

SolutionsSolutions

Angelica CacioppoAngelica CacioppoEnvironmental Environmental UnderwriterUnderwriter

Why is this relevant to Why is this relevant to you?you?

Environmental ProductsEnvironmental Products

1.1. Contractors Pollution Liability (CPL)Contractors Pollution Liability (CPL) No asbestos coverageNo asbestos coverage $10,000 minimum premium$10,000 minimum premium

2.2. Environmental Site Liability (ESL)Environmental Site Liability (ESL)

3.3. Enviro LiteEnviro Lite

Where our biggest opportunities to work together are!

Chubb Environmental Solutions Chubb Environmental Solutions PresentsPresents

ENVIROENVIROLiteLite

Site Liability for Small/Med BusinessesSite Liability for Small/Med Businesses $2,500 - $10,000 Premium $2,500 - $10,000 Premium

Same Day Quoting Same Day Quoting No Engineering Requirement No Engineering Requirement

15% Commission 15% Commission

Today’s Program Today’s Program SummarySummary ENVIROENVIROLiteLite

How it WorksHow it Works Information RequirementsInformation Requirements Program HighlightsProgram Highlights Coverage SummaryCoverage Summary Insurance DriversInsurance Drivers Claims ExamplesClaims Examples

Target ClientsTarget Clients

Light industrialLight industrial CommercialCommercial RetailRetail InstitutionalInstitutional HospitalsHospitals Small real estate portfoliosSmall real estate portfolios

Outside of the BoxOutside of the Box

10, 12, 13 and 14 – Mining 10, 12, 13 and 14 – Mining 237 Fur Good 237 Fur Good 261, 262, 263: Pulp and Paper261, 262, 263: Pulp and Paper 28X: Chemicals and Allied Products 28X: Chemicals and Allied Products 291: Petroleum Refining 291: Petroleum Refining 299: Products Of Petroleum And Coal 299: Products Of Petroleum And Coal 301: Tires And Inner Tubes 301: Tires And Inner Tubes 311: Leather Tanning And Finishing 311: Leather Tanning And Finishing 331, 332, 333: Steel mills and foundries331, 332, 333: Steel mills and foundries

Outside of the Box cont’dOutside of the Box cont’d

371, 372, 373, 374, 376: Auto, aircraft, ship 371, 372, 373, 374, 376: Auto, aircraft, ship and train buildingand train building

44X: Water Transportation 44X: Water Transportation 45X: Transportation by Air 45X: Transportation by Air 46X: Pipelines, except Natural Gas 46X: Pipelines, except Natural Gas 492: Gas Production And Distribution 492: Gas Production And Distribution 495: Sanitary Services 495: Sanitary Services 5169: Chemicals and Allied Products5169: Chemicals and Allied Products 721: Laundry, Cleaning, And Garment Services721: Laundry, Cleaning, And Garment Services

Coverage SummaryCoverage Summary

Pays losses or damages arising from Pays losses or damages arising from sudden sudden and gradual pollution incidents for and gradual pollution incidents for conditions that are on, under, or migratingconditions that are on, under, or migrating from a covered locationfrom a covered location

Primary coveragePrimary coverage Onsite Remediation CostsOnsite Remediation Costs Includes Liability resulting from polluting 3Includes Liability resulting from polluting 3 rdrd

party, as well as remediation costs on-siteparty, as well as remediation costs on-site New Conditions (Coverage B)New Conditions (Coverage B)

The Rating EngineThe Rating Engine

Based on Standard Industrial Classification Based on Standard Industrial Classification (SIC) Code(SIC) Code

Premium DriversPremium Drivers Number of Above Ground Storage Tanks > 250 galNumber of Above Ground Storage Tanks > 250 gal Underground Storage Tanks?Underground Storage Tanks? Building Size (Sq. Ft)Building Size (Sq. Ft) Number of LocationsNumber of Locations Onsite Remediation limitOnsite Remediation limit

Rating EngineRating Engine

Premium Drivers cont’dPremium Drivers cont’d Reportable DischargesReportable Discharges Violation of Environmental StandardsViolation of Environmental Standards ClaimsClaims Employee Responsible for Environmental Employee Responsible for Environmental

Matters?Matters?

The ApplicationThe Application

Summary of Operations Summary of Operations Neighboring ExposuresNeighboring Exposures Tank InformationTank Information Above Ground Storage TanksAbove Ground Storage Tanks Underground Storage Tanks Underground Storage Tanks NO SIGNATURE REQUIREDNO SIGNATURE REQUIRED

ENVIROENVIROLite Lite HighlightsHighlights

Premiums $2,500 to $10,000Premiums $2,500 to $10,000 Same Day QuotingSame Day Quoting 15% commission15% commission Low DeductiblesLow Deductibles On site remediation limits of up to On site remediation limits of up to

$1,000,000$1,000,000 No Engineering RequirementsNo Engineering Requirements

Highlights Cont’dHighlights Cont’d

Ability to Quote on Competitor ApplicationsAbility to Quote on Competitor Applications Broad Site Liability Policy Broad Site Liability Policy Includes Natural Resource DamageIncludes Natural Resource Damage Chubb Claims ExpertiseChubb Claims Expertise A++ Financial RatingA++ Financial Rating

Added BenefitsAdded Benefits

First Party Discovery Trigger for on site First Party Discovery Trigger for on site clean upclean up

Aggregate of Coverages EndorsementAggregate of Coverages Endorsement MouldMould Transported CargoTransported Cargo Non owned locationsNon owned locations Business interruptionBusiness interruption Illicit AbandonmentIllicit Abandonment

Typical Pollution Typical Pollution Insurance DriversInsurance Drivers

Financial institution loan requirementsFinancial institution loan requirements Lease agreements Lease agreements Contractual obligationsContractual obligations Balance sheet protection Balance sheet protection

Mistake Results in Need for Mistake Results in Need for Biohazard Waste RemovalBiohazard Waste Removal Lab late night cleaning crew maintained a Lab late night cleaning crew maintained a

lab that drew/tested patient blood lab that drew/tested patient blood samplessamples

One of the crew mistakenly placed used One of the crew mistakenly placed used needles in the dumpster meant for needles in the dumpster meant for unregulated trashunregulated trash

Mistake was discovered the next morning Mistake was discovered the next morning and biohazardous waste service was and biohazardous waste service was contacted to clean out the contacted to clean out the dumpster/remove the wastedumpster/remove the waste

Mistake Results in Need for Mistake Results in Need for Biohazard Waste RemovalBiohazard Waste Removal

Lab paid the biohazardous waste Lab paid the biohazardous waste disposal service $150,000 to clean out disposal service $150,000 to clean out the dumpsterthe dumpster

Clean up costs Clean up costs wouldwould have been more if have been more if the dumpster had already gone to a the dumpster had already gone to a landfilllandfill

Manufacturer Sued for Manufacturer Sued for Contaminating Adjacent Contaminating Adjacent PropertyProperty

Manufacturer of semiconductors was Manufacturer of semiconductors was sued for contaminating adjacent property sued for contaminating adjacent property with chlorinated solventswith chlorinated solvents

Case was resolved in a $7M settlementCase was resolved in a $7M settlement

Spill Cleanup Shuts Down Spill Cleanup Shuts Down BuildingBuilding

Tank failure caused release of 1,000 Tank failure caused release of 1,000 gallons heating oil into basement of a gallons heating oil into basement of a managed buildingmanaged building

Contamination was widespread and Contamination was widespread and resulted in damage of tenant’s furniture resulted in damage of tenant’s furniture inventoryinventory

Cleanup/repair required building to shut Cleanup/repair required building to shut down for 1 weekdown for 1 week

Spill Cleanup Shuts Down Spill Cleanup Shuts Down BuildingBuilding

Management firm was liable for $200,000 Management firm was liable for $200,000 property damageproperty damage

Also liable for $125,000 for remediation Also liable for $125,000 for remediation costscosts

Management firm incurred $100,000 Management firm incurred $100,000 claim for business interruption and extra claim for business interruption and extra expense due to loss of rentexpense due to loss of rent

Diesel Spill at Mountain Diesel Spill at Mountain ResortResort

In December 2009, a maintenance In December 2009, a maintenance worker discovered 3,000 l. of diesel fuel worker discovered 3,000 l. of diesel fuel had leaked from a generator on sitehad leaked from a generator on site

Due to poor weather conditions access to Due to poor weather conditions access to the site was limitedthe site was limited

The fuel ran down the hill toward the The fuel ran down the hill toward the nearby creeknearby creek

Due to immediate response from the Due to immediate response from the maintenance worker and contractors, maintenance worker and contractors, most of the spill was contained on sitemost of the spill was contained on site

Remediation costs were estimated at Remediation costs were estimated at $200,000$200,000

Diesel Spill at Mountain Diesel Spill at Mountain ResortResort

Submission WorkflowSubmission Workflow Send submissions to:Send submissions to:

acacioppo@chubb.comacacioppo@chubb.com

Questions??Questions??

Thank youThank you