Environmental Risk Resources Association

Submit a Question Library of Q&A Panel of Experts Message Board

Library of Questions and Answers

The library is a summation of the questions and answers submitted to "Ask the Expert". For confidentiality reasons, all references to member and expert are removed from the question. Questions may be submitted from the SEiP "Submit a Question" page. Comments about questions or answers can be sent to anne@erraonline.org.


Question: I want to know more about what Wisconsin is doing by way of purchasing insurance to protect against groundwater claims at Brownfield sites.

Answer: The State will grant a full wavier of liability ( better than a no further action letter) to a property owner that can demonstrate that their site is naturally attenuating. To get this letter, the site owner must purchase environmental insurance to pay for the costs of the site being reopened for clean up at some point in the future. The state purchased the master policy and individual sites are added over the course of the year. It is really a good deal for the property owners.

Business Interruption

Question:What is the availability of business interruption insurance for incidents of bankruptcy on single source contracts? (force Majeure?)

Answer: If the bankruptcy was caused by a pollution event then there would be an environmental insurance play. If the owner and the contractor were named on the policy as insureds then the contractor would have coverage to cover the BI loss of the site owner.

Environmental Impairment Liability / Pollution Legal Liability

Question: As referenced on the SEiP policy/application page, what is the difference between a standard EIL/PLL policy and a EIL/PLL with additional coverages policy.

Answer: A standard EIL (or PLL) policy typically only covers bodily injury, property damage and clean up costs of pollution that has migrated beyond the boundaries of the insured's site. In other words, the policy does not cover pollution onsite. EIL (or PLL) policies with additional coverages have the off-site coverage, but also include onsite bodily injury, property damage and clean up costs. Either form can be endorsed to fit the needs of the client. Contact the underwriter for policy wording or questions regarding their coverages.

Dry Cleaners

Question: Does anyone have any experience with different State Funds for dry cleaners?

Answer: We are not presently writing coverage in excess of the State Drycleaning Fund due to the difficulty in determining the long term stability of the fund and the fact that cleanup of drycleaning locations can be quite expensive versus the premium collected on individual risk locations.

Geo-Thermal Wells

Question: Who or what entity is currently writing surety bonds in the State of California for closure of GeoThermal wells?

Answer: Gulf indicated that they would write an insurance policy including closure coverage for geothermal wells as long as the closure amount was $500,000 or less. Their minimum premium is $10,000. Another suggestion is Evergreen National Indemnity.

Landfills and TSDF's

Question: Where can I find a copy of the federal law which requires proof of financial responsibility and closure/post-closure for TSDF's & Landfills

Answer: The Resource Conservation and Recovery Act (RCRA) sets the standard for financial requirements for landfills and TSDFs. The federal requirements can be found in 40 CFR 264/265 Subpart H.
Link to 40 CFR 264. Financial assurance requirements found in Subpart H
Link to 40 CFR 265. Financial assurance requirement found in Subpart H

Question: Does a permitted medical waste storage and transfer facility need any extra proof of financial responsibiltiy?

Answer: There are no special proof of financial responsibility requirements for medical waste facilities. Only licensed hazardous waste storage facilities have to provide proof of financial responsibility. If the proof of financial responsibility rules applied either the owner or the operator could provide the proof depending on who held the permit.

Old General Liability Policies

Question: How can I determine the text of a standard CGL policy issued in 1969 by Continental Insurance Company?

Answer: Continental would have used the standard policy form written by the Insurance Services Offices. This policy form should be found within the FC&S bulletins or in resource document called Silver Plume.

Worker's Compensation

Question: Looking for a monolone Workers Comp market for environmental contractor's including asbestos contractors.

Answer: Several of the environmental markets suggested the pool.

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