Despite Deepwater Horizon Disaster, Environmental Market Still Favors Buyers

But brokers/carriers are optimistic about increasing demand driven by Premises coverage, international growth

For weeks on end in 2010, live footage of a ruptured pipeline spewing oil underwater in the Gulf of Mexico served as a 24/7 reminder of the potential for environmental devastation. Underwriters and brokers dealing with Environmental insurance initially feared the worst in terms of the disaster’s impact on the industry.

“Everyone thought it would be the ‘Katrina’ for Environmental Liability,” recalls Marla Donovan, head of product development at Burns & Wilcox.

“It was hard to pick a set amount that would pay for the remediation, and the longer the remediation was in effect, the more expensive it became,” says Simon, adding that Chartis has ceased offering the coverage.

“That’s not to say you can’t put [a Stop Loss program] together,” Szot adds. “However, those types of policies and coverages are few and far between.”

Featured Video

Most Recent Videos

Video Library ››

Top Story

5 ways insurance agencies can improve their websites

The way people use the Internet has changed over the past few years. Has your website changed with it?

Top Story

15 tips for driving safely on ice and snow

More than 800 people die each year in the U.S. in vehicle crashes caused by snow, sleet and freezing rain.

More Resources


eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.