Beacon Hill Associates recently worked with an agent needing coverage for an $8M annual revenue manufacturer of flow line control systems for the chemical and refining industries. Coverage had been in the standard marketplace for the past 7 years but was being non-renewed by the carrier due to operations. In the changing marketplace, no other admitted market would look at the risk, so it needed to be moved to the E&S marketplace.

While in the standard market, the insured had General Liability including Products coverage, Auto liability, and Excess coverage. All these lines of coverage had a total pollution exclusion. The new agent approached the E&S market to find that they could provide broader coverage for the insured. The new policies that Beacon Hill helped arrange covered the General Liability including Products coverage, Auto, and Excess liability coverage. All these policies included broad form pollution covering bodily injury, property damage, and clean up expense.

The premium breakdown totals:

• $29k in premium with a $1M limit for the General Liability, Professional, Products Pollution, Contractors Pollution Liability, and Site Pollution.
• $20k in premium for a $5M Excess policy over the primary, follow forming all the primary coverages to limit.
• $14k in premium for the Auto coverage, which includes Broadened Pollution and MCS90.

This is a great example of why is it important to examine your clients' policies to make sure ALL of their operations are covered. The coverage written in prior years did not cover the insured's exposure to pollution loss due to the failure of their products, the potential of a contractor's pollution loss while on a third party site, and the pollution losses that manufacturers could experience on their owned and controlled sites.